U.S. Certified Public Accountants are gaining awareness about International Financial Reporting Standards (IFRS). Furthermore, CPAs increasingly foresee a need to gain advanced or expert knowledge as the U.S. moves toward global accounting standards over the next three to five years, according to a recent survey conducted by the American Institute of Certified Public Accountants (AICPA).
“We see clear evidence in our tracking survey that CPAs in the U.S. are not only increasingly aware of International Financial Reporting Standards but also significant numbers are beginning to recognize a need to gain advanced and expert knowledge,” said Arleen Thomas, AICPA senior vice president for member competency and development.
The latest AICPA tracking survey indicates a sustained shift toward greater awareness of IFRS among U.S. accountants. Nearly half, 47 percent, of CPAs in the survey, conducted April 20 to May 7, said that they already have basic knowledge of IFRS, an advancement from 39 percent who had basic knowledge in October 2008. At the same time, there has been a continuing decline in the number of CPAs who say they have no knowledge of IFRS; 16 percent in the latest survey, down from 30 percent in October 2008.
Nearly one in four CPAs, 24 percent, say they expect to need advanced knowledge of IFRS in coming years, compared to 5 percent who say they currently have advanced knowledge. Seven percent expect to need expert knowledge in the future, compared to only 1 percent with expert knowledge today.
The Securities and Exchange Commission decided in February to undertake a work plan that would allow the commission to reach a decision in 2011 about setting a future date for likely U.S. adoption of global standards in 2015. Two in five, or 42 percent, say the SEC should ultimately require adoption of IFRS for U.S. public companies, but only after more convergence of U.S. generally accepted accounting principles with IFRS. Another 18 percent support U.S. adoption outright. Only six percent believe IFRS should not be mandated or allowed for use by U.S. issuers.
A majority of respondents, 53 percent, are aware that the International Accounting Standards Board (IASB) recently issued IFRS for small and medium-sized entities (SMEs.) However, 51 percent of CPAs in public practice are unsure whether they would advise their clients to adopt IFRS for SMEs. A similar percentage – 49 percent – of CPAs working for private companies indicated they were unsure about adopting IFRS for SMEs.
IFRS are set by the IASB in London, the international equivalent of the U.S.’s Financial Accounting Standards Board (FASB) in Norwalk, Connecticut. You can read more information on IFRS at the AICPA’s Web site.