Synopsis: Since consolidating or at least reconciling U.S. GAAP and the global IFRS accounting standard seems to be unlikely, what specifically are the effects of this?

In the EXPANDING AROUND THE GLOBE box at the end of Section 14.1, some of the reasons why a global accounting standard is unlikely to happen are explained. Review the material found under Global Accounting Standards Unlikely to Happen, and then watch the video.

Since consolidating or at least reconciling U.S. GAAP and the global IFRS accounting standard seems to be unlikely, what specifically are the effects of this? Does this difference really matter to most small businesses in the USA or around the world? Even if it probably would be simpler for the entire global business community to utilize only one accounting “language,” are the costs of conversion to IFRS from GAAP worth it, for example, to U.S. companies that only do business domestically?

U.S. GAAP vs. IFRS

Back in 2009, when serious consideration was being discussed for all U.S. companies to switch to IFRS, CFO magazine published this summary of the costs for U.S. small business to switch over: https://www.cfo.com/accounting-tax/2009/03/guessing-the-costs-of-ifrs-conversion/.

So, what do you think? Are the costs worth it?