The objectives of financial report are different from each country, therefore, the worldwide market use the financial report from different countries all over the world following one practice standard. To respond to the need of this worldwide market, the US public companies must do the dual reporting to disclose and to present comprehensible information to the international investors and creditors.
Statement of the Problem
The dual reporting has been done by US public companies to attract more investors and creditors in the global market. The global market makes the US companies already doing their reporting under GAAP to file another reporting under IFRS.
Unfortunately, the U.S. public companies are taking a long time to finish the dual reporting due to the difficulties they confront or the challenges in the business to convert to IFRS and the intention deferred of SEC to apply the IFRS in U.S. even the FASB was taking an action for the conversion.
The purpose of this thesis is to determine what the U.S. public companies must do on their financial reporting to attract more investors and creditors in the global market? In addition, what are the consequences of the actions taken by the US public companies to convert to IFRS?
To answer these questions, the following sub-questions will be addressed:
1. What modifications in the reporting financial can be performed to attract more investors and creditors in the worldwide market?
2. What are the implications of converging U.S. GAAP and IFRS?
3. What are the advantages and disadvantages of using the IFRS?
4. How are the US public companies affected by the adoption of IFRS in the global market?
Significance of the study
This study is particularly significant to the US public companies in need of presenting their financial report to the investors and the creditors all over the world and the academic explanations of the concepts in the financial reporting. This study will benefit the first time user in need of perception or looking for more information about the IFRS.
Objectives of the Study
This study is expected to bring theoretical understanding of the IFRS, to convince the U.S. public companies to adopt the IFRS while participating on the global market.
The research presented in this paper is of...