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What are your thoughts on when and how IFRS should be adopted in the U.S.?

Please share with the group as to your thoughts as to the best way the IFRS being incorporated in the U.S. Should IFRS be adopted for all the companies - both listed and private companies?  Will there be a benefit for the adoption of the IFRS? 

Also please share your thoughts as to if you are currently reporting under IFRS or plan to report under IFRS  very shortly.

Answers

Michael Jameson
Title: VP Finance
Company: Undisclosed
(VP Finance, Undisclosed) |

I'm betting on 2016 now, after significant wrangling. The things is, as this plods its way along, more US companies are realizing that we want to have more say in these regs, and not just take a)what the IASB wants to throw our way, and b)Not just what the FASB wants to negotiate away. So I foresee lots of arguing and more of a drive for the FASB to take the intiative and defend US interests, not just play "good cop" in the negotiations.

Topic Expert
Sunil Thukral
Title: Controller/Technical Accounting Advisory..
Company: Consultant
(Controller/Technical Accounting Advisory/ SEC Reporting, Consultant) |

Thanks for your comments Michael.

In my opinion, it will depend on the type of companies (i.e. private / public companies and the size of the companies). It is possible that the the date for the private companies might be a couple of years later after the adoption of the standards by the Fortune 500 companies, if at all. For any big company it can take as much as 4- 5 years to make a proper transition to IFRS - so if SEC were to come with a final decision sometime in 2012, the earliest we are looking at 2016 -2017 time frame.

On the other hand, it is also possible that for private companies, there is a complete different set of accounting standards, i.e. a simplified version of the current U.S. GAAP. This approach was followed in Canada, when they adopted IFRS in 2011 for their market.

I will also see another approach gaining momentum soon - the optional adoption of the IFRS accounting standards in the U.S. Thoughts?

Topic Expert
Barrett Peterson
Title: Senior Manager, Actg Stnds & Analysis
Company: TTX
(Senior Manager, Actg Stnds & Analysis, TTX) |

I think the U.S. will adopt some form of adoption with a "prior review" by the FASB, along the way earlier suggestedby the SEC staff. I believe a "filtered adoption" should apply to both public and private companies. Please note that IFRS has a SINGLE standard for SMB [defined], with somewhat reduced/simplified requirements, unlike existing U.S. GAAP. Universal adoption will ensure common bank/investor incorporatio in lending, lease, and other contracts with affirmative and negative covenants, and facilitate analytical understanding and common use.

Topic Expert
J.D. Floyd
Title: Owner, CFO
Company: CFO Outsourcing Solutions, Inc.
(Owner, CFO, CFO Outsourcing Solutions, Inc.) |

As much as I would like to say 2014, I think "Tuesday after Never" is a good answer.

Too many things have to be considered by both the SEC and Congress. Look at what just happened with the JOBS ACT and how Congress & the President in their infinte wisdom just struck down Sarbanes-Oxley for some potential post-IPO companies. Even that Act is in conflict with some terms of Dodd-Frank.

There will be too many vested interests in Congress, Wall Street and even the U.S. Chamber of Commerce to think a covergence will happen anytime soon.

J.D. Floyd

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