International financial reporting standards (IFRS) are here: The SEC now accepts IFRS as issued by International Accounting Standards Board (IASB) from foreign company registrants. Further, the AICPA says that IFRS are high quality accounting standards under the ethics code and may be used currently by non-registered private companies in lieu of U.S. GAAP. Also, the SEC has announced a roadmap to decide in 2011 whether registered public companies are permitted or will be required to use IFRS as a substitute for U.S. GAAP as early as 2014. One clear conclusion from these developments is that, for at least a period of time, knowledge of both U.S. GAAP and IFRS will be required. Since most business students take only beginning accounting, IFRS is not a subject that can be reserved for upper level courses. IFRS must be integrated into the curriculum starting with the first accounting course. What do you as an accounting instructor need to know about IFRS? And what should you tell your students?
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.
Belverd E. Needles, Jr., Ph.D., CPA, DePaul University
Marian Powers, Ph.D., Northwestern University