Free Site Registration


More Debits & Credits Posts

IFRS Delay Helps Some Companies

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.”

Advertisement

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.


Advertisement
Advertisement

FASB Chair Leslie Seidman on Convergence with IFRS

February 1, 2012

Financial Accounting Standards Board chairman Leslie Seidman provides an update on the progress FASB is making on converging U.S. GAAP with IFRS.

Advertisement

SLIDE SHOW

Most Unusual Items Submitted on Employee Expense Reports

January 19, 2012

The results are bound to raise the eyebrows of any financial executive.

10 Stories That Shaped 2011

December 29, 2011

Our editors' picks for the 10 stories that shaped accounting in 2011.

Advertisement
Advertisement
Advertisement