RegulationAccounting StandardsUS uptake of IFRS must not mean ‘rules invasion’

US uptake of IFRS must not mean 'rules invasion'

Adoption of IFRS in the US poses the danger of allowing US rules to creep in, say Deloitte partner

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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.

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