As if investors do not have enough to worry about, along comes another problem. There is a growing movement to allow, perhaps eventually require, American companies and foreign companies trading in ADRs, to keep their books according to International Financial Reporting Standards, IFRS, instead of the venerable GAAP method we all know and love.

The move to IFRS makes a fair amount of sense given the global nature of capital markets. American investors will simply have to learn to read a balance sheet constructed using different rules. The problem looming on the horizon is, who will construct the IFRS balance sheets?

Continue reading GAAP vs. IFRS: New accounting rules could mean trouble

GAAP vs. IFRS: New accounting rules could mean trouble originally appeared on BloggingStocks on Thu, 26 Jun 2008 16:30:00 EST. Please see our terms for use of feeds.