Summary
As long as the F.A.S.B.'s blueprint could "identify the least disruptive, and least costly approach" to move U.S. public companies to IFRS, and this blueprint is generally accepted in the U.S. as accounting principals, the U.S. GAAP is applied. However, applying these standards by other countries and nations already requiring international accounting standards IAS would be a problem.
Analysis
During my university education, I was taught of two international standards, the US GAAP and the European IAS in addition to local unique standards of different countries.
With the current divergence of standards, of markets and investors in the Globe, and the revolutionary informational systems applied, no doubt the US GAAP and the European IAS will change dramatically, but will maintain their uniqueness as being American or European. We might hear in the future of international accounting standards applied in China, or India, or Arabia depending on the markets and investors needs.
What is needed really to cope with financial crises globally, or innovative trade and documentation financing for this matter, is to apply Globally Accepted Accounting Principals that would set the principal rules of accounting and financial reporting in the globe, with tolerance for unique standards of different countries.
I have no doubt that accounting standards and financial reporting in the US and in Europe will change dramatically; but what would be the global cost of it?
Issues like ''how to change the CPA exam to coincide with IFRS, and how to rework accountant training, education, and auditing standards to put the American system in sync with international rules'', would be an American Issue.
Cost issues of applying such changes in other nations will be levied heavily on the Big 4's presence and the individual public of the American Certified Accountants and Financial Analysts outside the US.
Would it not be less costly if Globally Accepted Accounting and Reporting Standards are blueprinted for discussion by a Global Board including the Americans and applied as Global Standards for all nations?
