Wednesday, August 27, 2008

Big Companies Might Scrap US Accounting Rules

It seems that we might get one set of accounting rules to rule them all by 2010.

SEC commissioners today approved a ``road map'' that might allow corporations with market values exceeding $700 million to abandon U.S. accounting standards by 2014. Under the plan, about 110 U.S. companies that are global leaders in their industries may move to international rules as soon as 2010.

``A global set of high-quality accounting standards would be an international language of disclosure, transparency and comparability,'' SEC Chairman Christopher Cox said at an open meeting in Washington. ``It's a goal worth pursuing.''

It seems that they need to hammer out an international standard that allows the SEC as well as foreign accounting groups to weight in on the new rules. One good thing that would come out of it is that CPAs would be able to work abroad without having to learn a new set of rules. Hmm, that means there could be CPA outsourcing as well. The double edged sword of Globalization strikes again.

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