Status of global convergence of accounting

  • EU required public listed companies to follow IFRS 
  • For countries that have not fully adopted IFRS, accounting standard setter tried to coverage their standard with IFRS
  • SEC no longer require IFRS reporting firms to reconcile  financial report to U.S GAAP. 
  • IFRS convergence is ongoing in Japan, China… 

Barrier to developing universally accepted set of financial reporting 

  • Different standard-setting bodies and regulatory authority of different countries disagree on best treatment on items or issues.
  • Political pressure from business group and others who will be affected by changes in reporting standard.