PracticeAuditUS companies clueless on global standards

US companies clueless on global standards

A new survey has revealed shocking statistics that show American companies are wholly unprepared for the adoption of international accounting standards in 2005.

Link: ICAEW wants ‘principles’ approach in Europe

New rules being drawn up by the European and American accounting standards boards will seek to harmonise European standards with US-based Generally Accepted Accounting Principles by 2005.

But a survey by CODA Group found that 87% of US would not be ready to comply with the rules by 2005. Even more incredulous, nearly half of US companies don’t even know what International Accounting Standards are.

Continuing the trend, 90% of American companies with operations across Europe, the Middle East and Africa, which will be directly affected by IASs, are also doing virtually nothing, the survey showed.

And more than half have no plans yet to comply at all.

Commenting on the results, Jeremy Roche, CEO of CODA, said all businesses needed to ensure that they were equipped to cope with change.

‘The fact that the WorldCom, Enron and Tyco scandals happened at all confirms the need for new levels of financial control,’ he added.

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