Free Site Registration


More Debits & Credits Posts

IFRS Delay Helps Some Companies

Print
Email
Reprints
By Michael Cohn
April 27, 2010

The uncertain state of U.S. adoption of International Financial Reporting Standards could be helping a number of companies by giving them extra time to make the adjustment.

That was one of the points raised during a discussion of global accounting standards on Tuesday hosted by Pace University’s Lubin School of Business in New York. The Securities and Exchange Commission recently ruled that IFRS won’t be incorporated into U.S. financial standards until 2015 at the earliest, depending on a decision next year on whether to go forward with the transition. 

“We know we have time between now and when the SEC mandates it,” said IBM director of IFRS policy and implementation Aaron Anderson. “We can do a brisk walk instead of a sprint.”

John McGinniss, executive vice president and chief accounting officer at HSBC North America Holdings, said the delay could benefit smaller community banks.

Several of the speakers disputed the notion that IFRS is more principles based than U.S. GAAP. “U.S. GAAP is founded upon principles,” said SEC Chief Accountant James L. Kroeker. “That’s what the P is supposed to stand for.” However, he noted that principles-based regulations “don’t work if the people behind them aren’t principled.”

Tom Jones, director of Lubin’s Center for the Study of International Accounting Standards, believes that adoption of IFRS is inevitable, and he sees limitations in the convergence process of U.S. GAAP with IFRS. “You can’t converge 17,000 pages with 2,000 pages,” he said. “You have to adopt at some point.”

0 Comments

Be the first to comment on this post using the section below.

Add Your Comments...

Already Registered?

If you have already registered to Debits & Credits, please use the form below to login. When completed you will immeditely be directed to post a comment.

Forgot your password?

Not Registered?

You must be registered to post a comment. Click here to register.


Follow Accounting Today
Advertisement
Advertisement

Women in Accounting: Where are the Leading Ladies?

May 17, 2013

Marcum’s Nanette Lee Miller and Janis Cowhey McDonagh sat down with managing editor Tamika Cody to discuss some of the obstacles women in the accounting profession face when trying to make their way into leadership positions.

IMA’s Jeff Thomson on the Role and Skills of Management Accountants

May 8, 2013

Institute of Management Accountants president and CEO Jeffrey Thomson discusses why accounting students should consider management accounting as a career, and the IMA's partnership with John Wiley & Sons.

Breaking out of Molds to Get Ahead

May 6, 2013

ConvergenceCoaching partner Jennifer Wilson talks with Accounting Today senior editor Danielle Lee about how female accountants can position themselves better for a promotion at their firms.

Advertisement

SLIDE SHOW

Top 10 Tech Initiatives -- 2013

May 5, 2013

The AICPA's annual list of IT priorities for accounting firms.

Tax Stats: May 2013

April 30, 2013

Our monthly collection of statistics from the world of tax.

10 Biggest Estate Planning Mistakes

April 29, 2013

Help your clients avoid these common pitfalls.

Common E-mail Security Mistakes

April 23, 2013

These five bad habits can make your confidential information -- and that of your clients -- easy to steal.

The Art of the Tax Cartoon

April 9, 2013

A selection of tax cartoons from Philly tax firm Drucker & Scaccetti's 'Finding Humor in Taxes' exhibit.

Advertisement
Advertisement
Advertisement