RegulationAccounting StandardsUS business execs still unsure about IFRS

US business execs still unsure about IFRS

US business execs still not convinced that US should adopt international standards

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

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