US business execs still unsure about IFRS

More than half of American business executives are not convinced the US should adopt international accounting standards, a KPMG survey has found.

KPMG asked 2500 executives in America whether they generally supported US adoption of international accounting rules, with 58% either opposed or undecided.

The questions were asked during a web seminar two days after US Securities and Exchanges Commission (SEC), Mary Schapiro, said she would delay a final decision on US adoption until 2011, and companies would not be permitted to begin using the rules until at least 2015.

However, almost half of respondants, 49%, said they would like the ability to adopt IFRS earlier before the SEC’s 2015 timetable.

“Much work needs to be done before a US change to IFRS,” said Janice Patrisso, partner and national IFRS leader at KPMG.

“While some uncertainty remains, companies are not slowing their IFRS conversion activities, with 49 percent of respondents saying they’d like the ability to adopt IFRS earlier than the anticipated 2015 or 2016 implementation date targeted by the SEC work plan and only 18 percent saying they will delay their IFRS plans based on the SEC’s February 24 announcement.”

Schapiro has said she will investigate the impact of IFRS on American companies, before making a final decision to switch. Meanwhile, the International Accounting Standards Board and its US counterpart the Financial Accounting Standards Board are harmonising their two accounting languages.

Further reading: US dawdles over adoption of international standards