Case | HBS Case Collection | March 2011 (Revised May 2011)

The IASB at a Crossroads: The Future of International Financial Reporting Standards

by Karthik Ramanna, Karol Misztal and Daniela Beyersdorfer

Abstract

What are the major challenges to the continued growth of IFRS worldwide? Should countries be encouraged to pursue "full adoption" of IFRS or should each country determine its own IFRS "convergence" strategy? Given the limitations of governance and information-intermediation institutions worldwide, should IFRS limit the use of fair-value accounting? How should the IASB respond to the growing power of emerging markets such as China in international standard setting? What lessons can be learned from the growth and development of IFRS for international harmonization of corporate governance standards more broadly? This case first describes the IASB's major accomplishments over the 2001-2010 period and then outlines the major challenges to the continued growth of IFRS as it enters its second decade.

Keywords: International Accounting; Emerging Markets; Financial Reporting; Global Strategy; Fair Value Accounting; Corporate Governance; Standards; Adoption; Growth and Development Strategy;

Citation:

Ramanna, Karthik, Karol Misztal, and Daniela Beyersdorfer. "The IASB at a Crossroads: The Future of International Financial Reporting Standards." Harvard Business School Case 111-084, March 2011. (Revised May 2011.)