Date Approved


Degree Type

Open Access Senior Honors Thesis

Department or School

Accounting and Finance


More than 100 countries around the world currently require or permit International Financial Reporting Standards (IFRS) reporting in 2009. When U.S. companies convert from U.S.Generally Accepted Accounting Principles (U.S. GAAP) to IFRS, they are faced with great challenges as well as opportunities to make choices on financial reporting policies. A survey of leading European pharmaceutical companies that used U.S. GAAP prior to the IFRS adoption was conducted to evaluate their first-time adoption of IFRS practices. The survey results are structured into three aspects and discussed in this thesis. First, IFRS 1 optional exemptions at transition date. Second, key accounting differences from IFRS to U.S. GAAP reconciliation, and the third, choices of alternative accounting methods allowed by IFRS. U.S. pharmaceutical companies can learn from these results to choose IFRS 1 optional exemptions to their best interest, to prepare reconciliation between U.S. GAAP and IFRS and to make accounting choices under IFRS for their first time adoption of IFRS. These results not only provide benchmark information, but also provide U.S. companies a cost-effective pathway in making their reporting choices in the near future when U.S. companies convert from U.S. GAAP to IFRS.