The accounting convergence movement may be waning, but that doesn’t mean international accounting rules are any less relevant in the United States. In fact, their importance is growing, according to those who say companies should be as committed as ever to learning and understanding the international rule book.
“The dialogue has shifted,” says David Schmid, a partner and international accounting leader at PwC. The focus today is less centered on whether, when, and how the Securities and Exchange Commission might permit or require the use of International Financial Reporting Standards in the United States. U.S. Generally Accepted Accounting Standards remain entrenched, but IFRS is gaining ground around the world, even in some U.S. markets, he says. “So much capital now moves globally, and that means you’re dealing with IFRS. If you want to be a relevant participant in U.S. capital markets, you need to have this bilingual skill.”
