The globalization of the world's capital markets has created a growing need for comparable, detailed and transparent financial reporting systems, making it imperative to establish a set of high-quality global accounting standards (Gornick- Tomaszewski , S., & Showerman, S. 2010). Currently, there are two sets of generally accepted accounting principles for international financial reporting: the US GAAP (Generally Accepted Accounting Principles) which was developed by the Financial Accounting Standards Board (FASB) and the International Financial Reporting Standards (IFRS) issued by the International Accounting Standards Board (ISAB) (Kieso, DE, Weygandt, JJ, Warfield, T, D, .2013. To ensure uniformity in financial reporting, many countries around the world have decided to accept IFRS as the global accounting standard to be used for the preparation of financial statements of publicly traded companies (Gornick-Tomaszewski, S., & Showerman, S.2010). IFRS can be defined as a comprehensive and high-quality set of accounting principles, rules and interpretations used in preparation of financial statements (Gornick-Tomaszewski, S., & Showerman, S.2010). Currently, over 115 countries around the world use IFRS to report the financial statements of domestic companies. The European Union has mandated that all listed companies in Europe use IFRS to prepare their information is more comparable and less complex for users (Kieso, DE, et al, 2013). However, financial data reporting in the United States is complex. The reason for this complexity arises from the fact that US multinational companies with subsidiaries listed on foreign exchanges can prepare their financial statements using US GAAP while foreign public companies...... middle of paper ......national+ financial+reporting+standards+%3A+are+right+for+the+us.+The+journal+of+global+business+issues+volume+7+number+2Gornick-Tomaszewski, S., & Showerman, S. (April 2010).IFRS in the United States: Challenges and Opportunities. Business Review, 30(2), 59-71. Retrieved from http://www.readperiodicals.com/201004/2113499381.html Or, A. (May 2012). Perspectives on the possible adoption of IFRS. Retrieved from http://www.albany.edu/honorscollege/files/Or_Honors_Thesis.pdfKieso, D. E., Weygandt, J. J., & Warfield, T. D. (2013). Intermediate Accounting, 15th edition. John Wiley& Sons, Inc.Chasan, E. (February 4, 2014).SEC's New Strategic Plan Departs From IFRS.CFO Journal. Retrieved from http://blogs.wsj.com/cfo/2014/02/04/secs-new-strategic-plan-backs-away-from-ifrs/IFRS FAQ (2014). AICPA resources on IFRS. Retrieved from http://www.ifrs.com/ifrs_faqs.html