Adoption or Convergence of IFRS Likely in the U.S., but the IASB and Others Grow Impatient

According to research conducted by the Association of Chartered Certified Accountants (ACCA), which surveyed nearly 500 U.S.-based investors, many expect the SEC will one day require reporting under International Financial Reporting Standards (IFRS). More investors agreed than disagreed that the long-term benefits of adoption would outweigh the costs, the report found.
“U.S. adoption of IFRS would give a tremendous boost to the cause of globally comparable financial reporting, and more importantly, the U.S. and world economies,” said Sue Almond, technical director at ACCA. “While there are clearly challenges and reservations, attitudes to IFRS

appear to be changing in the U.S., irrespective of any action by the SEC.”

However, expressing the frustration with the perceived lack of commitment by the U.S., in December, The Institute of Chartered Accountants in England and Wales (ICAEW) published a report saying that it’s time for the (International Accounting Standards Board) IASB to end standards convergence with the United States and focus on nations that have adopted IFRS in whole or in part.

In response, IFRS Foundation Trustee James Quigley said in an interview that the current convergence projects need to be finished soon, but that the IASB’s focus on the nations that use its standards should not come at the expense of continued cooperation with the United States. Quigley also said the convergence process needs to be appreciated for its progress in moving IFRS and U.S. GAAP closer together, rather than being criticized for the differences.

Constructive dialogue must continue between the IASB and FASB as progress toward convergence continues, Quigley said. “I think we need to look at the SEC staff paper as another

data point, another step in a long-term journey,” he added. “I don’t think it’s time to wave the white flag.”
For more information on the differences between IFRS and the current U.S. standards, GAAP, and how they relate to machinery and equipment appraisal and financial reporting, click here. To

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