IFRS 'clock is ticking', warns Herz

Robert Herz

Bob Herz, the head of the US Financial Accounting Standards Board, has warned that IFRS could be delayed by the problems in financial markets.

‘The clock is ticking,’ Herz told delegates at PwC’s Meet The Experts summit this week.

Last month, the SEC announced that it was fine-tuning an IFRS roadmap before rolling it out to US companies for comment, but the moves have been affected by the global crisis in the financial markets.

‘Events in the credit markets have probably led to delays in publishing of the roadmap for consultation. It may be for the next administration to deal with,’ Herz said.

Herz countered suggestions that the economic crisis had damaged the prospects for IFRS in the US: ‘I would personally hope that it reinforces the idea that global problems need global solutions.’

Even though efforts are being made to get IFRS adoption under way proper, Herz added that the SEC dropping its requirement for foreign issuers to reconcile their accounts to US GAAP had been unexpected.

‘It came to the surprise of some,’ said Herz. ‘They did it a little bit earlier than they might have.’