Just need a brief overview of this article not an essay no word count but must be original and pass turnitin.The journal article I chose regarding the convergence of International Financial Reporting Standards (IFRS) focuses on the time period of 2007-2014. The article explains the change in political leaders specifically President Busch to President Obama and how the world was under financial crisis. Foreign countries were mandated to prepare their financial statements using costly methods since they were not conforming to U.S. GAAP or SOX guidelines. International companies began withdrawing from foreign exchanges with the U.S. According to McEnroe and Sullivan (2014 pg. 16) “in an effort to reduce these listings the SEC issued “Acceptance from Foreign Issuers of Financial Statements Prepared in Accordance with International Financial Reporting Standards without Reconciliation to U.S. GAAP.” Shortly after the U.S. inquired about being given the same option of continuing to utilize U.S. GAAP or select IFRS. Since the two types of accounting systems were different there was concern regarding audits and the administration of policies specifically in the field of insurance. Adopting the IFRS accounting system allowed certain countries to get away with using the system while continuing to engage in their own nation’s specification and standards of auditing. In conclusion the differences between the two systems is the U.S. GAAP accounting reflects a standard based on regulations whereas IFRS accounting reflects a standard based on fundamentals. In the end the U.S. never adopted IFRS and as the SEC analyzed the pros and cons of the possible transition from U.S. GAAP to IFRS the knowledge of investors and members of the financial community grew in the United States and globally. (McEnroe & Sullivan 2014)
