More Debits & Credits Posts

SEC Resists Pressure on IFRS Decision

February 27, 2012

SEC chair Mary Schapiro said that she will not be rushed to make a decision on International Financial Reporting Standards.

“I don’t feel pressure at all to go along with anybody,” she told Reuters at the Practicing Law Institute’s SEC Speaks conference on Friday. “I feel pressure to do the right thing for U.S. markets and U.S. investors.”

However, the SEC has recently given encouraging signs that it will ultimately allow IFRS to be incorporated into the U.S. financial reporting system, even though it has pushed back the decision. SEC chief accountant James Kroeker said earlier this month that he was hopeful his staff could put forward a model for doing just that (see U.S. Official “Optimistic” on Global Accounting Move). Hans Hoogervorst, the chairman of the International Accounting Standards Board, was sufficiently encouraged by Kroeker’s statement to call it “confidence boosting.”

However, European regulators appear to be running out of patience with the long U.S. delay. European Commission internal markets commissioner Michel Barnier reportedly told the U.S. Chamber of Commerce last Thursday. “European patience has its limits, and we are not far from reaching that limit. We hope that the United States will apply these standards.”

Comments (1)
It's not too early for accounting professionals to start thinking about the possibility of transitioning to International Financial Reporting Standards (IFRS). European and Canadian companies found that the transition took significantly more time and effort than they had expected. It required them - and would require U.S. companies - to change many aspects of accounting processes, including data capture, implementation and reporting. Interestingly, to have organization-wide visibility, many U.S. companies with overseas operations already reconcile their IFRS results abroad with GAAP reports in the U.S.

Given that the momentum is heading toward IFRS, it makes sense to start thinking about it today to minimize disruption and get ahead of the curve.

- Steve Pugh, CEO of UNIT4 CODA, Inc.
Posted by Steve Pugh | Tuesday, March 06 2012 at 11:47AM ET
Add Your Comments:
Not Registered?
You must be registered to post a comment. Click here to register.
Already registered? Log in here
Please note you must now log in with your email address and password.