Reference no: EM133148133

Question - Convergence efforts between US GAAP and IFRS slowed under pressure from the change of us administration in 2008 and the global financial crisis. The target date has been pushed back to 2010. On July 13, 2012, the securities and exchange commission issued the "work plan consider international financial reporting standards in the issuer's financial reporting system", and points out the limitations of some of the major international financial reporting standards, in the end there is no problem advice whether to adopt the international financial reporting standards in the United States (the U.S. securities and exchange commission, 2012). As a result, the SEC has made limited progress or comment on its merger efforts over the past five years. While the joint work of IASB and FASB has resulted in some relatively successful convergence projects (e.g., IFRS 16/ASU 842 leasing, IFRS 15/ASU 606 revenue recognition), the future of the alliance remains uncertain. Outline the reasons why US regulators may accept publicly traded financial reports prepared under IFRS rather than US GAAP. How do you think the agreement to accept IFRS will affect U.S. companies?