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It is important for the United States to convert to the accounting standards that the rest of the world has already adopted, so that all countries’ financial statements can be consistent with one another. The Securities and Exchange Commission, SEC, has officially announced that the United States will in fact eventually abandon the practice of using the Generally Accepted Accounting Principles and move toward using the IFRS standards, like so many countries before them have done. This mandate for conversion to IFRS has not been finalized as to a deadline date, but colleges and businesses are already planning their implementation strategies.
Globalization of the corporate world has helped to recognize the need for just one accounting standard, IFRS, and this change will have a huge impact on Accounting education in the United States over the next decade or two. It will also have a direct impact on current students majoring in Accounting, as well as existing accountants who are currently working in businesses today. It is a large debate these days about how exactly the United States will teach the new material to students and current accountants. Teachers are having a hard time deciding how to blend the IFRS teachings into their courses. There have been a few options proposed on how to teach the material.
One of the options discussed is to add additional courses, with new textbooks, to the Accounting curriculum in colleges and universities. The additional courses would focus on detailing the differences between the IFRS standards, compared to the GAAP standards; this would be necessary in order to teach the Accounting students the new material. This option may be unattractive, because it would require the students to take additional classes and spend a longer amount of time in school before they get their Accounting degree. A longer amount of time in school would translate into additional costs. For those individuals who have already graduated with Bachelor’s degrees in Accounting, and are already working in the Accounting field, they will also need to be educated on the new principles. These existing accountants will need to take additional seminars or classes in order to learn the new material. These seminars should be made available by the companies these individuals work for, because the company has a responsibility to ensure that their employees have the training necessary to perform their jobs. The companies also have to comply with the SEC mandate. If individuals work as a free-lance accountant for a temporary accounting agency, or work independently as Certified Public Accountants (CPA), then they would have to take their own initiative and find IFRS training classes on their own.
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