In good news, the SEC is finally moving away from GAAP and toward international standards.
Introduced in two steps, the shift could eventually cut costs for companies and smooth cross-border investing. At the same time, investors worry it will create confusion, especially during the transition. Other critics worry that the international system offers too much wiggle room for companies, compared with the more precise rules enshrined in U.S. standards.
Aw, come on. Any worries are misplaced. U.S. accounting standards gave us dot-com EBITDAs, Enron, WorldCom, Tyco, mark-to-manure valuations of CDOs on bank balance sheets, and everything else contributing to the U.S.'s current malaise. I for one am glad to see the U.S. harmonize with the rest of the world on something. Now if only we could adopt the metric system of weights and measures . . . nah, that's just wishful thinking.
