US uptake of IFRS must not mean 'rules invasion'

The US uptake of IFRS must not result in rules-based accounting taking over globally, a senior figure has said.

Deloitte accounting partner Ken Wild warned that adoption of IFRS in the US posed the danger of allowing US rules to creep in.

Wild made the comments after the Securities and Exchange Commission announced a timeline for US adoption of IFRS.

‘It’s really difficult to remove rules. And it is also easy for them [the US] to say that this rule is okay and still works, and is thus fine to use. This could then affect IFRS and the rest of the world. US rules could invade IFRS,’ warned Wild.

The firms are now gearing up their global resources to aid the US firms in the transition to the new standards.
PricewaterhouseCoopers’ accounting advisory leader in the UK Alex Finn said that in the past decade the firm had focused on a core group of conversion experts, and built up a team of 700 full-time conversion specialists.

Ernst & Young partner of financial reporting advisory Amin Mawji said the firm has already started working with clients to raise awareness and educate finance departments about the likely opportunities and challenges of a transition to IFRS.

‘We have put in place structures and processes to bring the combined knowledge and experience of the firm to the coal face in the US where our teams are now helping clients plan for transition,’ said Mawji.

The plans are inclusive of an internal network of IFRS experts, which includes UK specialists dedicated to IFRS conversions.

‘They’re people who have worked on European and Australian conversions and work hand in glove with the rest of our team in the US,’ said Mawji.