There is an impending change in financial reporting standards here in the U.S. from the current Generally Accepted Accounting Principles (GAAP) to the more globally accepted International Financial Reporting Standards (IFRS) currently in use in over 100 other countries. According to the Securities and Exchange Commission (SEC), proposed implementation is this year - 2013. Public companies would be impacted first, followed eventually by private companies and nonprofits.
The shift in standards is no small matter. We predict that it will fundamentally affect virtually every area of business and financial reporting – from accounting and taxes to valuation and compensation. It will be like abandoning one's native language for a completely new way of communicating - not just for accounting professionals, but for business owners, executives, financial advisors and investors, too. Preparation for the switch will likely take several years.
RBF is keeping track of developments through our national and state accounting societies (AICPA, MSCPA) as well as through our affiliation with Russell Bedford International, an international accountancy network of member firms in more than 70 countries. As news of the change develops, we will keep our business clients informed. And we will stand ready to assist you with the concrete steps necessary to adapt to this brand new world of financial reporting.