The Inevitable United States Adoption of IFRS: How and Why the United States Should Be Prepared

Abstract

Abstract:In an age where technology makes the world smaller and business transactions happen by the microsecond, both private and public entities have utilized global standards. These standards are often voluntary and span many different industries. In the twenty-first century, financial reporting standards have not been immune toward the pull for global uniformity. The International Financial Reporting Standards (IFRS) are a set of international financial reporting standards that countries can choose to adopt in full or in part. Currently, there are 143 countries that have adopted IFRS in some capacity. This Note addresses the voluntary nature of global standards in the context of financial reporting. This Note suggests, with a focus on inventory valuation, that the U.S. adoption of IFRS is inevitable due to the international pull toward uniformity of financial reporting, and the United States should take a proactive approach in implementing IFRS to minimize negative externalities.