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Resistance to changes

Published on Wednesday, August 17, 2016

Resistance to changes

Press Release

Download the book Here

The focus of this book was to discover findings on the resistance to change from rules-based to principles-based standards in the U.S. capital market. This lack of what accountants call “a singular accounting language”  results from the US using different accounting standards than other 138 countries.  In this book Dr. Lemus’s exposes the reluctance by the US to change from the US Generally Accepted Accounting Principles (GAAP) currently being used domestically, to the International Financial Reporting Standards (IFRS) used by most other countries.  The book explains why the IFRS should act as a singular accounting language, and how this will promote high transparency and a better economic position in the world financial market.

·         Accounting Standard Convergence Status

The United States should simulate the adoption strategy of the IFRS used in Mexico, Brazil, and Argentina (Steinbach & Tang, 2014). According to Rivera and Figueroa (2013), more than 50% of the top five hundred publicly-traded companies in the stock market use the IFRS as their financial reporting disclosure method.

·         IFRS Adoption Challenges and SEC Road Map

A major concern, to professional accountants and regulators in the United States, is the taxonomy aspect under the convergence process from the GAAP to the IFRS.

·         Accounting Technical Differences

The most suitable approach to reach an understanding of the similarities and differences between rules-based and principles-based standards is to critically analyze each individual function area within an organization that is adopting the IFRS (Koehn & Klimek, 2011).

·         IFRS in Higher Education

In the convergence effort, the countries that adopted principles-based standards are the EU, Australia, New Zealand, and Canada. Presently, universities in the emerging economies market are aligning their accounting curriculum with the IFRS. Empirical research studies suggest that the United States has a lack of training the IFRS.

·         IFRS Capital Investment

The prohibition of LIFO represents a cost of billions of dollars in terms of taxes to American medium-sized and publicly-traded companies. The SEC cannot afford two accounting standards under the same jurisdiction, because it is expected that the United States will face another Enron corporate financial scandal.

·         IFRS Protecting Investors’ Assets

Forbes Insights (2012) conducted a survey of five hundred U.S. based investors with a combined income of $2.3 trillion under management. The investors indicated that adopting the IFRS would be beneficial to the Anglo-Saxon market. The survey results indicated that 34% of the investors felt comfortable with the convergence process, and that 38% of financial statements could be analyzed from the two standards perspectives. For instance, 22% of the investors claimed that the quality financial reporting disclosure under the IFRS is more superior than the GAAP. Finally, only 25% favor the GAAP (Forbes Insights, 2012).


I can be reached via my cellular phone at (954) 253-6543, or via e-mail at edellemus@hotmail.com


Thank you in advance for your time and consideration. I look forward to speaking with you about the above mentioned press release.


All the best,


Dr. Edel Lemus, DBA.,MIBA

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