AICPA Joins Global Accounting Alliance

The American Institute of Certified Public Accountants (AICPA) has announced it support for the Global Accounting Alliance (GAA). This coalition of the world’s leading accounting bodies provide recommendations for improving financial reporting worldwide, including the recent report, "Getting to the heart of the issue – Can financial reporting be made simpler and more useful?"  

Our worldwide economies are becoming more and more interdependent. Barry Melancon, President and CEO of the AICPA states:

"As policymakers pursue a more coordinated, global approach to regulation and market support, we in the accounting profession are continuing a dialogue on how to reduce complexity in financial reporting by moving toward globally-accepted, principles-based financial reporting standards."

The GAA brings the stakeholders of financial reporting together to discuss solutions to length and complexity of financial statements, not to mention the discrepancies from country to country. As the world does business as one, global standards are increasingly important.

Kevin Dancey is the Chief Executive of the Canadian Institute of Chartered Accountants. He serves as chair of the GAA. In his words:

"It is clear from our research that a body of principles based international standards is viewed around the world as the best basis on which to report the economic substance of financial transactions, and that further steps are needed to ensure that principles are embraced more fully. This could include a professional judgment framework that is accepted by regulators and others around the world. It is also clear that there is a strong interest in turning back the tide of growing complexity in financial reporting. But there are major legal, cultural and regulatory challenges that will need to be tackled if we are to achieve these objectives. The report identifies some of the important questions that need to be addressed, but the only way to resolve these issues will be through a global debate involving all key stakeholders."

The GAA report "Getting to the heart of the issue – Can financial reporting be made simpler and more useful?" is available for download from the GAA website at www.globalaccountingalliance.com.

Image Credit: CarbonNYC, Flickr