I recently attended a leading partners meeting for my region of CPAmerica. In the interest of full disclosure, I am not the managing partner for our firm. I came off the bench for this one. However, I find that when I attend these meetings I end up both inspired and depressed. Inspired because being in the company of such great colleagues challenges me to rise up to my best and allows me to see the potential for my firm and in myself. Depressed because I see the obstacles in our way, obstacles that experience teaches are difficult to surmount. Those in the position of power and benefiting handsomely from the situation are reluctant to change, even if they admit to the long-term benefit. If I want to be a leader, I need to make sure inspiration wins out.

With the convergence projects over the last few years, the remaining differences are fairly small and, even then, only an accountant might understand or appreciate the reporting subtleties that result.  Will mezzanine presentations confuse? Will anyone care if they do?

Switching to IFRS may help prevent the politicization of accounting standards and hopefully forestall future efforts to legislate GAAP – recall the misguided efforts to stop expensing of stock options and the lobbying of banks who wanted to stick their collective heads in the sand when it came to writing down CDOs. IFRS Rule 9 aside, the invisible hand will not be fooled. Continue reading →