Like others, we heard loud gushing sounds following the Securities and Exchange Commission's August announcement of its timetable for converting the U.S. public financial reporting system to compliance with IFRS instead of GAAP.Unlike most commentators, we're skeptical, nay, cynical about this movement, and cannot join in the clamor with enthusiasm. Like virtually everything that comes out of Washington, we don't think this idea is as good as the press releases suggest. As much as we criticize GAAP, we are not at all ready to endorse moving to another system without really good reasons.

As we've analyzed this situation, we've raised questions that cry out for answers, but nobody seems to be asking them, so we're stepping into the minefield by laying them out, along with our tentative answers and caveats.

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