First Faculty Advisor
Transition; GAAP; IFRS
This research intends to determine the costs and benefits of the transition from Generally Accepted Accounting Principles (GAAP) to International Financial Reporting Standards (IFRS) in the United States. This study targets the costs and benefits of the transition in three areas of accounting: Academia, Corporate and Public. The transition could potentially have large implications on investment in the US and around the world, and therefore, this study aims to see if it is beneficial for the US to adopt IFRS. To ascertain the costs and benefits of the transition, this research used an online survey to obtain knowledge and opinions of professionals from the three areas of accounting. Based on the results, this research shows that the benefits of the conversion far outweigh the costs and therefore the US should adopt IFRS. Transitioning to IFRS will allow the US to regain strength in the global investment market as financial statements will have greater comparability and hopefully this will benefit the economy as a whole. However, with the US being the last major economy to make the conversion, the longer the Securities and Exchange Commission (SEC) takes to agree to go forward with IFRS, the longer it will take for investment in the US to increase and for US investors to prosper in the global market.