Many countries,including Canada,have replaced Generally Accepted Accounting Principles (GAPP) with International Financial Reporting Standards (IFRS).Why has the United States not made this change to date?
A)There is a fear that such a move would distort the analysis of a firm's performance over time.
B)Moving to this new accounting standard would impose major financial costs on U.S. firms during the current period of poor performance and economic uncertainty.
C)U.S. companies are, by and large, unaffected by activities in other jurisdictions, and as such, the change in accounting practices would result in only minor adjustments to financial statements.
D)The change to IFRS practices would have a major affect on financial statements, but investors do not rely heavily on financial statement information in making future investment decisions.

Question

Quizplus · Accepted Answer

Moving to IFRS would impose major financial costs on U.S. firms during a period of economic uncertainty and poor performance. This is the primary reason why the US has not made the change to date. While the other options may also be a consideration, they are not the primary reason for the delay in adopting IFRS.

Many Countries,including Canada,have Replaced Generally Accepted Accounting Principles (GAPP) with International