The Securities and Exchange Commission should soon establish a specific date that International Financial Reporting Standards would be required for U.S. public companies. That was the view expressed by 62 percent of finance professionals responding to a new Deloitte survey.
The survey also found that a significant majority (75 percent) of respondents support the movement toward a single set of high-quality global accounting standards. However, 64 percent of those responding indicated that they have not allocated any budget to IFRS transition.
"Companies may be looking for a date certain so they can begin to plan ahead to increase the likelihood of a cost effective, practical and achievable timeline for their IFRS transition," said D.J. Gannon, leader of Deloitte's IFRS Center of Excellence. "Having a set timeline for mandatory IFRS adoption would likely help companies effectively and efficiently prepare for IFRS."
In addition, a majority (56 percent) of respondents described the timeline for mandatory IFRS adoption in the SEC's proposed roadmap (which would begin for some U.S. public companies in 2014), to be "about right" or even could be accelerated.
The survey results also suggest that the SEC consider extending the option for early use of IFRS to a broader group of U.S. public companies than is currently outlined in the proposed roadmap. Fifty-six percent of survey respondents are in favor of increasing the scope of the early use option.
"With the globalization of business activities and capital markets, thinking locally for many companies may no longer be an option," noted Gannon. "In light of the current economic situation, there may be a need to re-think the approach to financial reporting, and that likely means moving toward global standards."
Under the proposed roadmap, early IFRS users may need to continue to maintain U.S. GAAP information, as a final decision on mandatory use is not contemplated until 2011. Sixty-one percent of those responding noted that the proposed requirement to maintain U.S. GAAP information until 2011 decreases the likelihood of electing the option for early use of IFRS.
About the Survey
The Deloitte survey, conducted in March 2009, had more than 150 respondents, including financial professionals, CFOs and finance managers. Survey participants were self-selected and responded through a web-based survey. The sample of survey respondents includes companies from various industries including financial services, health services and government, consumer and industrial products, energy and resources and technology, media and telecommunications.
For the complete survey, please visit http://www.deloitte.com/us/ifrs/results2009
About Deloitte
As used in this document, "Deloitte" means Deloitte LLP and Deloitte Services LP, a subsidiary of Deloitte LLP. Please see www.deloitte.com/us/about for a detailed description of the legal structure of Deloitte LLP and its subsidiaries.
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