When it comes to accounting standards, where public companies tread, are private companies sure to follow?
It is possible — but not likely to occur anytime soon. I think some years after IFRS has been applied in the United States, the users of private company financial statements will dictate what standards to use. The options include standards specifically developed for private companies, a reduced set of the existing U.S. GAAP, the IFRS or the IFRS for small and medium-size entities. Some countries which require IFRS for listed companies allow their private companies to continue to use national GAAP for reporting purposes for a few years, but progressively require these private companies to adopt IFRS.
