The Institute of Management Accountants has joined a widespread call for the Securities and Exchange Commission to accept financial reports prepared under international accounting standards without reconciliation with U.S. generally accepted accounting principles.The IMA's main concern is not so much that filings by foreign companies might be easier, but that convergence with international standards would effectively replace the U.S. set of standards - which the institute believes are onerous, if not downright crushing.
"We are very accepting of IFRS without reconciliation in the short-to-medium term," IMA president and chief executive officer Paul Sharman said. "We believe that the direction toward convergence is important in the medium-to-longer term. The challenges we have with that are that there are some things in IFRS that are going to be very costly to some corporations. Revising accounting systems, for example. A shift in accounting treatment for inventory."
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