more-arw search

As IFRS Adoption Spreads, Holdouts Urged to Come on Board

In a recent speech, IFRS Trustees Chairman Michel Prada said more countries ne

In a recent speech at the 2012 meeting of the International Organization of Securities Commissions in Beijing, International Financial Reporting Standards Foundation Trustees Chairman Michel Prada said the

In a recent speech at the 2012 meeting of the International Organization of Securities Commissions in Beijing, International Financial Reporting Standards Foundation Trustees Chairman Michel Prada said the IFRS has come a long way over the last decade, but still has a long way to go.

Since the movement behind IFRS began in Sydney in 2000, roughly 100 countries around the world have either required or allowed adoption of the standards for their companies, Prada told the assembled crowd. This includes two-thirds of G20 countries and nearly half of Fortune 500 companies. This widespread adoption has given the standards political legitimacy, technical credibility and accountability, he said.

"I think we can safely say that IFRSs have now achieved critical mass as international standards, and are here to stay," Prada said. "However, we cannot get the full benefit of those standards without the remaining major economies coming fully on board. The financial crisis served to increase the urgency of this work. Policymakers around the world have asked for a level playing field in financial reporting."

Recently, former members of the International Accounting Standards Board and the Financial Accounting Standards Board urged the Securities and Exchange Commission to adopt IFRS, Accounting Today reported. Slow adoption from the United States has given other major economies like Japan and China second thoughts about the standards, said former IFRS chairman Sir David Tweedie.

Topics: