Legislative / Regulatory

IFRS lives? Never doubted it for a minute

CrystalWe have some pretty smart readers here at CPA Success.

I'll give you an example: We took a brief look recently at the United States' on-again, off-again love affair with international financial reporting standards. Specifically, we wondered why, when nearly 90 percent of finance executives polled in a Deloitte study believe mandatory IFRS adoption in the U.S. is inevitable, that love affair seemed more off-again than on-again in recent months.

Soon after that post appeared, Business Learning Institute instructor, resident IFRS expert and "Accidental Accountant" Peter Margaritis posted a comment that read as follows:

"I believe that IFRS is not dead and in the next 30-60 days the SEC is going to comment on the roadmap. One of the reasons that the SEC has been quiet on the IFRS issue is that a full-time chief accountant had not been appointed. However, on Aug. 25 Mary Schapiro named James Kroeker as the new chief accountant. That hurtle has been cleared. But what changes will the SEC make to the current roadmap? Will they extend the mandatory implementation dates to 2016, 2017 and 2018, or further? Will they keep the current roadmap but drop the 'vote' in 2011? It is hard to say at this point and we will have to wait and see. The Deloitte study should be an excellent indicator that the adoption of IFRS in the U.S. is inevitable."

Sure enough, just a day later Kroeker told an audience at a New York Society of CPAs conference in New York that "turning back to the roadmap will be an important priority for us this fall." Here's a recap of Kroeker's comments from Reuters reporter Emily Chasan:

Last November, in one of the last major projects of the SEC under former Chairman Christopher Cox, the SEC staff released a proposed roadmap that would have U.S. companies filing financial results under international financial reporting standards, or IFRS, by 2014, with the option for some companies to adopt the rules earlier.

Kroeker, who took up his post last month, said on Thursday that in the more than 200 comment letters the SEC has received on the proposal, it was "resoundingly clear" that people agree there should be a single set of global high-quality accounting standards, but there were striking differences in how different groups wanted to accomplish that goal.

Kroeker said the SEC staff, as "an important next step," would work on how to put into place various pillars and milestones to reach that goal.

Nice call, Peter! Now, does anyone want to take a shot at one-upping him? Let us know what you think the SEC is going to do this fall on the IFRS front.

And don't forget: You'll find the latest details on IFRS at the following MACPA programs:


Bill Sheridan