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.

Related Articles

The ‘uncomfortable truth’ behind FRC’s Big Four fines recommendations

Audit The ‘uncomfortable truth’ behind FRC’s Big Four fines recommendations

5d Carl Johnson, Stephensons
BDO holds off Big Four to retain top position as AIM auditor

Audit BDO holds off Big Four to retain top position as AIM auditor

6d Alia Shoaib, Reporter
FRC urged to fine Big Four firms penalties over £10m

Audit FRC urged to fine Big Four firms penalties over £10m

3w Alia Shoaib, Reporter
EY to audit Standard Chartered bank

Audit EY to audit Standard Chartered bank

1m Alia Shoaib, Reporter
KPMG replaces PwC as Croda auditor

Accounting Firms KPMG replaces PwC as Croda auditor

2m Emma Smith, Managing Editor
EY fined £1.8m over Tech Data audit

Accounting Standards EY fined £1.8m over Tech Data audit

2m Emma Smith, Managing Editor
Top 50+50: Firms post significant growth in new tax and audit rankings

Audit Top 50+50: Firms post significant growth in new tax and audit rankings

2m Emma Smith, Managing Editor
FRC closes investigation into PwC over Barclays compliance

Accounting Firms FRC closes investigation into PwC over Barclays compliance

2m Alia Shoaib, Reporter