International Financial Reporting Standards (IFRS) have been adopted by more than 100 countries across the globe. One of the few remaining economic powers yet to adopt IFRS is the United States. The likelihood of IFRS adoption in the US increased in 2007 when the Securities and Exchange Commission (SEC) removed the requirement for non-US companies registered in the United States to reconcile their financial reports with US GAAP, should their accounts comply with IFRS. In addition the SEC is considering possible incorporation of IFRS into the US domestic financial reporting system from approximately 2015 or 2016 (SEC 2010). Consequently, US colleges and universities are paying increasing attention to IFRS and the incorporation thereof into their accounting education programs. A recent survey of US academics suggested that more than half of the respondents expected IFRS to have been significantly incorporated into their curricula by 2011 (Munter and Reckers 2009). When incorporating IFRS into their curricula, these academics will need to select appropriate pedagogy to support IFRS’s inclusion. Given that the objective of the International Accounting Standards Board (IASB) is ‘to develop a single set of high quality, understandable, enforceable and globally accepted financial reporting standards based upon clearly articulated principles’ we propose that IFRS education too be principle-based.
This article is from the Accounting Instructors’ Report, an electronic journal that provides teaching tips and insights to those who teach accounting and other business courses.
Stephen A. Coetzee, University of Pretoria, South Africa
Astrid Schmulian, University of Pretoria, South Africa