It is now planned to initiate convergence of two financial reporting standards, the International Financial Reporting Standards (IFRS) and the US Generally Accepted Accounting Principles (GAAP). While this will involve additional charges for businesses and it also requires substantial investment to get it up and running it is hoped the new standards and guidelines will make it more straight forward for investors from the region to compare and contrast inter-country business performances.
Therefore the new across the board system will require existing businesses that are already using the system to make some changes to adapt to the newer version. This will involve some changes to their IFRS current practices to gain the maximum benefit from the new system.
It is hoped that this process will be fully completed by 2011 although at present there is some difference of opinion as to what the final structure and layout of accounting practices is likely to be. At present IASB and FASB stating that they may not be able to resolve all of the accounting standard issues due to varying views and many have also stated that they think a June 2011 deadline might be overtly ambitious at this stage.
If the US Securities and Exchange Commission identify that the project of uniting both standards has decreased the gap between the two the US might adopt IFRS in 2015.Paul Holdsworth, Staff Writer, Gulf Jobs Market News