The US adoption of IFRS

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The U.S. Adoption of IFRS
International Financial Reporting Standards is a set of international accounting standards that guide the organization and reporting of particular transactions information in financial statements (Tan et al. 45). It is now becoming a global standard and has been adopted in more than 100 countries (Tan et al. 53). However, the United States is yet to follow that route, with the General Accepted Accounting Principles (GAAP) still taking center stage in accounting. Should the U.S. adopt IFRS? The discussion in this essay will try to answer this question while considering the advantages and the disadvantages.
The adoption of IFRS by the U.S. will mean that, small companies will be required to prepare only one financial statement because there will be only one set of regulations. It will, therefore, save time and reduce costs that would have otherwise been doubled. It will enable small enterprises to use the saved resources in other business operations which will enhance their development. IFRS is principle-based, as opposed to GAAP which uses an industry-specific method in revenue recognition. Therefore, IFRS provides more freedom to the companies in their financial performance. In addition to that, GAAP requires a company to expense its research and development costs which could otherwise be used in other sectors when if IFRS is implemented.
IFRS also provides easier and improved comparability since the standards a…