Thursday, September 20, 2012
Accounting & Information Systems
Accounting & Information Systems Professor at the Wisconsin School of Business Terry Warfield was featured Wednesday in a Thomson Reuters article about convergence trends in accounting.
The article focused on the work by The Financial Accounting Standards Board (FASB) and the International Accounting Standards Board (IASB) to unify accounting principles among the U.S. and countries that use International Financial Reporting Standards (IFRS). According to the article, though the two boards have been working for the last decade to create a standard model, convergence and communication has hit its lowest point since the project began in 2002.
Though it was founded six years earlier, in 2008 the importance of creating standard worldwide practices became clear in the aftermath of the global financial crisis. Experts had hailed the project as way to allow investors to compare financial performance from different global financial markets. However, agreeing on the standards has not been as simple.
In the article, Warfield provided his analysis of the situation: “Standard-setting is not a very clean, idyllic thing. It’s full of politics,” he says. “Right now, global politics make it very, very difficult for either board to sign on and get to same answers on all of these issues—and these are tough issues.”
Warfield's primary research interests are financial accounting standards and disclosure policies, including the effects of accounting information and disclosures on securities markets. He is the chair of the Accounting & Information Systems department and the director of the school’s Arthur Andersen Center for Financial Reporting and Control.
Warfield teaches intermediate and masters-level courses in financial reporting and he has served on numerous Ph.D. dissertation committees.
To learn more about the Department of Accounting and Information Systems, visit their website.