For U.S. GAAP, the end of an era could be in the making — and Dr. David R. Campbell Sr., head of LeBow College’s department of accounting, says that from an educational perspective the United States is better positioned than most other countries for the transition because we have one of the strongest platforms for developing entry-level accounting professionals globally.
In August, the SEC unveiled a proposed road map that begins to widen the acceptance of International Financial Reporting Standards. The plan could lead to a requirement for U.S. public companies to begin using IFRS by 2014.
Dr. Campbell told the Journal of Accountancy in October that educators “will definitely be challenged. However, the theoretical foundations underpinning U.S. GAAP and IFRS are similar — and merging through convergence — and I’m confident that accounting educators will respond to our changing environment and deliver high-quality students ready to enter and provide leadership in the global IFRS financial reporting arena in the coming years.”
Campbell said that based on his experiences in Europe during the transition period from national GAAPs to IFRS, he sees the SEC road map as an opportunity to rethink financial reporting across all dimensions. He also says that those in the C-suite should not overlook “their increased responsibilities in setting sound accounting policies that fit their business model. They must be ready to explain and justify these policies in the context of the IFRS framework.”