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Research Article Open access CC BY 4.0

The Need, Challenges, and Prospects of IFRS Adoption in the United States

Avinash Arya

Asian Journal of Economics, Business and Accounting · pp. 73–81 · Published 17 Jun 2024

10.9734/ajeba/2024/v24i71392

Abstract

Academic research shows that IFRS-based financial statements enhance transparency and comparability of financial statements. However, Securities and Exchange Commission, the regulatory body in the United States, continues to refuse to require or permit domestic companies to use IFRS. There exists a robust demand for IFRS in the United States. Though there are some obstacles in the path of IFRS adoption, these are not considered insurmountable and adoption of IFRS will provide US companies with much needed flexibility.

IFRS US GAAP convergence small and micro-sized entities

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