U.S. plans change in accounting standards

A new study by accounting firm KPMG LLP finds that business students will soon learn new international accounting standards in their classes as companies begin to adopt these same new rules.

As the U.S. Securities and Exchange Commission finalizes its timeline to adopt International Financial Reporting Standards, differences between the IFRS and current Generally Accepted Accounting Principles will mean curriculums and textbooks at U.S. business schools will change to include these new guidelines over the next few years.

Frederick Choi, chair of Stern's Department of Accounting, said NYU is currently creating a team to work on adding the IFRS to its accounting curriculum.

"The world of business today is a global one," Choi said. "Accounting is the language of business."

According to Blane Ruschak, KPMG's executive director of university relations and recruiting, more than 100 countries have moved toward the IFRS. With this change, Ruschak noted that U.S. accounting will be "accumulated the same way as another country."

Stern junior Jennifer Ho acknowledged the significance of IFRS.

"Our world is becoming more and more global and interconnected," Ho said. "Knowing the IFRS can facilitate better understanding of a company and an economy on a global perspective."

Stern sophomore and accounting major Stanton Bhola is unsure how the new standards will impact his course load, but he believes the move is best in the long run.

"As an accounting student in general, it does worry me that a Big Four firm such as KPMG thinks students need to invest more time in IFRS," Bhola said. "It pretty much means that … one country really cannot do business without relying on another country to help with their growing business."

Ying Lam is a staff writer.