Why Are US Companies Hesitant on Training IFRS?
Due to the Securities and Exchange Commission failing to provide CFO's with a confirmed date as to when IFRS (International Financial Reporting Standards) is to be implemented, many of the leading companies in our country are not directing their resources towards the change and feel it is not a priority.
It's not surprising to learn that many of our nation's top companies are hesitant simply due to the fact that the SEC has not finalized or provided an exact guideline as to what the final outcome is to be.
The two documents- GAAP and IFRS- are to be combined with each remaining unchanged, but containing the same guidelines for financial and accounting decision making.
Globally, it appears that the U.
S.
has the most issues with the change over to IFRS.
American businesses have trained their financial advisors and accountants in the ways of GAAP, and are therefore unfamiliar with IFRS.
This is going to cause a major rift in companies who do not train their employees before the final alterations are made and IFRS is to become a reigning operation ensuring compliance.
It does however give them a leg up over foreign businesses who are unfamiliar with GAAP.
With foreign companies being familiar with IFRS and American companies being familiar with GAAP, it's fair to say that in order for each to be successful in the change over, they both will have to learn to incorporate the others procedures into their new policies.
As it was stated earlier, there is no definitive way to tell which way the final outcome will sway.
Anyone can see this as being the biggest reason why CFO's are unwilling to train their staff.
Until there is a definitive outcome, many businesses plan to sit back and wait instead of wasting much time, energy, and money in a training that may be useless.
They see their actions as being cost-effective; and can you really blame them? So, some advice from Financejobz.
com that will help all future accountants- obtain the knowledge of both GAAP and IFRS before entering the hiring pool.
You'll stand a better chance at landing a position over someone with years of experience.
For when the time comes for U.
S.
companies to comply, they'll be looking to hire folks with knowledge of the changes instead of training them to suit company needs.
It's not surprising to learn that many of our nation's top companies are hesitant simply due to the fact that the SEC has not finalized or provided an exact guideline as to what the final outcome is to be.
The two documents- GAAP and IFRS- are to be combined with each remaining unchanged, but containing the same guidelines for financial and accounting decision making.
Globally, it appears that the U.
S.
has the most issues with the change over to IFRS.
American businesses have trained their financial advisors and accountants in the ways of GAAP, and are therefore unfamiliar with IFRS.
This is going to cause a major rift in companies who do not train their employees before the final alterations are made and IFRS is to become a reigning operation ensuring compliance.
It does however give them a leg up over foreign businesses who are unfamiliar with GAAP.
With foreign companies being familiar with IFRS and American companies being familiar with GAAP, it's fair to say that in order for each to be successful in the change over, they both will have to learn to incorporate the others procedures into their new policies.
As it was stated earlier, there is no definitive way to tell which way the final outcome will sway.
Anyone can see this as being the biggest reason why CFO's are unwilling to train their staff.
Until there is a definitive outcome, many businesses plan to sit back and wait instead of wasting much time, energy, and money in a training that may be useless.
They see their actions as being cost-effective; and can you really blame them? So, some advice from Financejobz.
com that will help all future accountants- obtain the knowledge of both GAAP and IFRS before entering the hiring pool.
You'll stand a better chance at landing a position over someone with years of experience.
For when the time comes for U.
S.
companies to comply, they'll be looking to hire folks with knowledge of the changes instead of training them to suit company needs.
Source...