Resumen
AbstractAccounting is a byproduct of its environment. It takes information and transmits it for users that are both internal and external to the company. The United States has been working to converge with IFRS since the Norwalk Agreement in 2002. These environmental factors have caused different accounting standards to develop in different countries. The International Financial Reporting Standards (IFRS) were developed to address the differences in accounting standards worldwide. However problems persist with IFRS. Comparability even within countries that use IFRS is not perfect. Many countries use a local variation of IFRS. In addition, the European Union has a formal endorsement process for every IFRS standard published by the IASB to decide if the EU will adopt the standard. In addition to the political pressure this causes, it could cause further problems with comparability in the future if the United States adopt IFRS. The fundamental rules vs. principles debate and the cost of conversion to IFRS for US companies is also a barrier to the convergence project.