In a national survey of CFOs and senior comptrollers conducted by Grant Thornton LLP, the U.S. member firm of Grant Thornton International Ltd, half believe that U.S. companies should be permitted to use IFRS, instead of U.S. GAAP, in financial statements filed with the SEC, while half disagree.
"It appears that finance professionals have begun choosing whether they want to be in the pro-IFRS or anti-IFRS camp," noted Gary Illiano, Grant Thornton's national partner in charge of International and Domestic Accounting, "and it's pretty evenly divided. Funny, but it wasn't that long ago that we were all saying, 'IFRS – what's that?'"
In addition, if given a choice, 40 percent of senior financial executives would choose to never use IFRS, 20 percent say they would start in 2011, 19 percent say later than 2016 and another 18 percent say 2014.
"There are so many critical choices that financial executives must make," said Illiano, "especially in the current environment. Deciding whether and when to switch to IFRS is a big one; it cannot be rushed or taken lightly."
With respect to the tax implications of converting to IFRS, many issues remain open, said Randy Robason, Grant Thornton's national partner in charge of Tax Risk and Accounting Services. The areas that touch the determination of tax liability are exceedingly complex and require extensive study to fully understand the options and their impact at both federal and state levels. And, of course, some significant provisions such as IAS 12, Income Taxes have not been finalized and therefore the impact cannot yet be determined, which adds further pressure on the conversion schedule said Robason.
|Do you have experience preparing financial statements according to International Financial Reporting Standards (IFRS)?||All||Public||Private|
|Should all U.S. companies be permitted to use IFRS, instead of U.S. GAAP, in financial statements filed with the SEC?||All||Public||Private|
|Are you familiar with the proposed IFRS for private entities (recently renamed IFRS for Non-publicly Accountable Entities)?||All||Public||Private|
|Should privately held U.S. firms be permitted to use IFRS for private entities when preparing financial statements?||All||Public||Private|
|Would you be interested in using IFRS for private entities for your company's financial statements?||All||Private|
|Given a choice, when would you begin to use IFRS (either the full IFRS or IFRS for private entities) to report your company's financial statements?*||All||Public||Private|
*May not total 100% due to rounding.
About the Survey
Grant Thornton LLP conducted the biannual national survey from March 23rd through April 4th, 2009, with 530 U.S. chief financial officers and senior comptrollers participating. In its fifth year, the Grant Thornton Survey of Senior Financial Executives is the longest running survey of its kind.