Posted by & filed under Accounting Principles, Financial Accounting, Financial Reporting and Analysis, IFRS, Intermediate Accounting, International Accounting.

The Effects of Converting to IFRS

The primary question raised in this article is:  “What effects would switching to IFRS have for companies, if forced to switch by the SEC?” Based on a panel of four executives from four major companies, most agreed that there will be almost no material effects in areas that investors care about. 

Questions:

1.  Based on the opinion of Jack Klinger, director of accounting research at Alcoa, what would be the greatest impact of IFRS for his company?

2.  What did Aaron Anderson, director of IFRS policy at IBM see as the benefit of converting to IFRS?

3.  Based on comments by HSBC’s chief accountant, John McGinnis, what was a benefit to the bank of reporting U.S. results in IFRS?

 Source:

Leone, M. (2010). Unfazed by IFRS. CFO.com, Today in Finance, April 30. (Retrievable online at http://www.cfo.com/article.cfm/14495043/c_14494842?f=TodayInFinance_Inside)

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