Bedford, N.H. (Feb. 10, 2003) -- Nearly 90 percent of U.S. companies won't be ready to comply with new global accounting rules proposed for 2005, according to research by CODA Financials Inc., a provider of financial intelligence and accounting software.
The survey of midsized and large corporations showed that, in the face of the upcoming harmonization of U.S. and European accounting standards, almost half of U.S. companies don't know what the European-led International Accounting Standards are, and only 13 percent of companies have prepared for taking on IAS.
For a company's financial statements to comply with IAS for the 2005 period, it needs an IAS balance sheet for the 2003 year-end at the latest, CODA said. The only companies surveyed that had taken steps to comply with IAS, however, operate in the energy, manufacturing and minerals industries and have additional offices outside of the U.S.
Companies with operations outside the U.S. who will be directly affected by IAS are similarly unprepared for the new standards, CODA reported. Across Europe, Middle East and Africa region, almost 90 percent of companies have done nothing towards IAS compliance despite the 2005 deadline. The research also concluded that while 70 percent of organizations know about the IAS requirements, they are still failing to act or put plans in place to be ready in time.
-- Electronic Accountant Newswire Staff
