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

Avinash Arya *

Department of Accounting and Law, William Paterson University, Wayne, NJ- 07470, United States of America.

*Author to whom correspondence should be addressed.


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.

Keywords: IFRS, US GAAP, convergence, small and micro-sized entities


How to Cite

Arya, Avinash. 2024. “The Need, Challenges, and Prospects of IFRS Adoption in the United States”. Asian Journal of Economics, Business and Accounting 24 (7):73-81. https://doi.org/10.9734/ajeba/2024/v24i71392.

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