Graduation Year

Fall 2011

Document Type

Campus Only Senior Thesis

Degree Name

Bachelor of Arts



Reader 1

Marc Massoud

Reader 2

Gregory Hess

Rights Information

© 2011 Benjamin J. Salzman


The purpose of this thesis is to examine in depth the process of U.S. GAAP convergence to IFRS. The thesis begins by providing the history of convergence, which include all the measures that have led to the FASB’s and IASB efforts today. Some specific accounting issues that the FASB and IASB are working on in their joint projects to eliminate the differences are explored. The issues that the FASB and IASB need to cover in order to complete their efforts laid out in the Memorandum of Understanding, and even possibly adopting IFRS, are covered next. The risk implications if the United States were to adopt IFRS as it stands today are examined. There are numerous short-term risks if the U.S. adopts IFRS immediately, many of which include increased expenses for companies and more room for managerial manipulation of earnings. After disclosing the short-term risks, the long-term benefits of adopting IFRS, which include decreased costs from consolidation and increased comparability for users of financial statements, are highlighted. The thesis then covers the opinions submitted to the SEC about convergence or endorsement of IFRS. The conclusion includes interviews of three Deloitte professionals on their opinions of convergence, and my views based on my research.

This thesis is restricted to the Claremont Colleges current faculty, students, and staff.