US INVESTORS expect the country will eventually adopt IFRS, but this will take time and require substantial investment in staff and training, ACCA has said.
According to research surveying nearly 500 US-based investors, many expect the SEC will one day require reporting under IFRS.
More investors agreed than disagreed that the long-term benefits of adoption would outweigh the costs, the report found.
"US adoption of IFRS would give a tremendous boost to the cause of globally comparable financial reporting, and more importantly, the US and world economies," said Sue Almond, technical director at ACCA.
Among the main challenges identified, investors believed it will take four and a half years for most companies to be ready for IFRS, and that awareness of IFRS among US-based investors is modest.
Hans Hoogervorst, chairman of the IASB, said: "The ACCA's findings are consistent with anecdotal feedback we hear from the US investor community. They also lend further credence to the argument that the US is well prepared for a successful transition to IFRS."
Almond added: "While there are clearly challenges and reservations, attitudes to IFRS appear to be changing in the US, irrespective of any action by the SEC."
In legal form it is possible for IFRS to become applicable in US soon However I can't see IFRS genuinely being applied in the US in the next 15 years . The US comprises of many states some of which have been given too much autonomy . This empowered them to operate like separate countries in some legal and accounting issues.
So the first thing is to expedite the harmonisation of the accounting and legal frameworks within the US first with IFRS in mind
Once that has been done the US can then harmonise with IFRS in more detailed and 'line by line' manner. We should recognise that accounting standards do affect legal rules in the treatment of certain items So we should also think of changing certain legal rules in many countries otherwise the adoption of IFRS will suffer from too many conflicts and exceptions Its adoption would become a sham in many countries
Posted by: Nyerho Odje FCCA, 16 Nov 2012 | 09:09
The adoption of IFRS by a lot of countries comes with a lot of advantages,this will help reduce the cost of investment by foreign investors and also enhance easy comparability of financial statement between different countries.
The united States being a leading economy will have a great financial benefit with the adoption of the IFRS, it will enhance easy access to finance and reduction in borrowing cost. The USA should adopt the IFRS which will have a beneficial multiplier effect on member countries.
Posted by: Olasubomi Ishola-Lemomu, 15 Feb 2013 | 23:13
I appreciate the fact that the use of IFRS will encourage Foreign investments and bring about ease of comparability in Financial Reports. Beyond this the use of IFRS will foster share holders confidence in Published Financial Statements. This will also minimise the different approaches to material issues appearing in financial statements. It must however be noted that standards ate living documents meant to guide the daily business operations and therefore should be susceptible to updating to address the prevailing economic trend.
Posted by: JOSEPH TYOVENDA, 19 Mar 2013 | 14:35
It is doubtful IFRS will be adopted in the United States in the next two decades. Compliance with IFRS has costs. I don’t think corporations in the US are happy to defray such costs out of the investor pocket. Moreover, it is highly impossible that SFC, FASB and other standards setting bodies in the US will give up it rights.
Posted by: CC Choi, 20 Mar 2013 | 00:36
Now British will teach Uncle SAM how to run a successful business...Thats a joke.
Posted by: Suleman, 20 Mar 2013 | 21:17
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