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How widespread is IFRS? Rule-based vs Principle-based?

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Q1. How widespread are IFRS and what do you think will happen to US GAAP?

Q2. What is the difference between a rule-based and principle-based system?

Q3. Discuss the Global Reporting Initiative, its purpose, the standard setting process, the use of its reporting system, etc.

Q4. How has SOX affected business organizations and the accounting profession?

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Q1. How widespread are IFRS and what do you think will happen to US GAAP?

IFRS is adopted in many non-US countries but it is less known in the US since the SEC requires US GAAP for publicly traded firms and that is a LARGE portion of the traded capital in the world. So, in terms of widespread, it is certainly widely used in non-US countries. I do not think US GAAP is going away. I believe IFRS and US GAAP will become more alike but the US is very litigious and so the "bright lines" of what is acceptable and what is not keeps the legal system from draining massive resources inspecting the judgments audit-by-audit for all the public firms. Having particular rules is helpful when everything is challenged in court.

Q2. What is the difference between a rule-based and principle-based system?

A rule-based ...

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Carol Sargent, PhD
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  • MSc, University of Virginia
  • PhD, Georgia State University
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