Accounting Without Borders Has Its Time Come?

Companies as diverse as IBM Corp, Credit Suisse Group and Intel Corp have something in common. While all of these three leading companies file their financials according to US generally accepted accounting principles (GAAP) as their primary filing choice, they are also significantly impacted by the...

Full description

Saved in:
Bibliographic Details
Published in:Financial Executive 2007-09, Vol.23 (7), p.22
Main Authors: Heffes, Ellen M, de Mesa Graziano, Cheryl
Format: Magazinearticle
Language:English
Subjects:
Accounting policies
Consolidated financial statements
Convergence
GAAP
Internal auditors
International Financial Reporting Standards
Jurisdiction
Multinational corporations
Online Access:Get full text
Tags: Add Tag
No Tags, Be the first to tag this record!
Description
Summary:Companies as diverse as IBM Corp, Credit Suisse Group and Intel Corp have something in common. While all of these three leading companies file their financials according to US generally accepted accounting principles (GAAP) as their primary filing choice, they are also significantly impacted by the use of International Financial Reporting Standards (IFRS) in a variety of jurisdictions around the globe. And, while all these three multinationals recognize the potential benefits of one consistent set of accounting principles around the globe, if given the choice today, not one of them would quickly make the move from US GAAP to IFRS. At least, not yet. While convergence may sound like nirvana, in reality, getting there presents some hurdles. Changing a GAAP in a country is more than just accounting, explains IBM's VP Gregg Nelson, and involves many other areas in the corporation that include how your company is viewed and reported on in that jurisdiction. Switching from US GAAP is a one-time choice, so you have to make sure you analyze all areas.
ISSN:0895-4186