Changing accounting standards in the U.S.
U.S. Moves Toward International Accounting Rules
The New York Times reported today that the S.E.C. is moving toward requiring U.S. companies to follow international accounting standards. It has proposed a roadmap that allows some large businesses to begin using the international standards in 2009 and will require all companies to use them by 2016. Embracing the international standards will make it easier to compare the financial performances of U.S. companies with those of foreign companies, and it will make it easier for businesses to make money across international borders. There are concerns, however, that the standards of the International Accounting Standards Board are less rigorous than the current U.S. rules and that some countries may adopt them more fully than others.
Relevant lectures: 11, Information Integration & Interoperability (10/6) and 12, Enterprise / Institutional Categorization & Standards (10/8).