In May 2008, the AICPA Governing Council recognized the IASB as an accounting body for purposes of establishing high quality accounting standards and with an amendment to Appendix A of AICPA Rules 202 and 203 gives AICPA members the option to use IFRS as an alternative to US GAAP. Thus, private companies were given the option of using IFRS. (The SEC has not made this option available for public companies.) The IASB has now made a third option available for private companies in the U.S. by issuing IFRS for Small, and Medium-Sized Companies (SMEs). This latter development has the potential for significant change in accounting practice and accounting education.
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