CPAs stall in move toward IFRS due to SEC’s delay

The U.S. accounting profession delayed preparing for adoption of International Financial Reporting Standards (IFRS) over the last six months. This followed the lead of the SEC which set aside its review of U.S. plans for adoption to focus on the credit crisis, according to an AICPA survey.

A 65% majority of CPAs said they hope the SEC addresses its plans for IFRS adoption by the end of the year.

“Our semi-annual survey shows most CPAs believe the U.S. should move toward IFRS and they are looking to the SEC for leadership and direction,” said Arleen Thomas, AICPA senior vice president for member competency and development.

Familiarity with IFRS among U.S. CPAs didn’t advance during the past six months.  Nevertheless, 50.6% said they expect they will need relevant IFRS knowledge within the next one to three years and 8% say they need more knowledge now.

Support for IFRS

• 53.6% support IFRS use by U.S. public companies
• 14.1% support an SEC mandate of IFRS
• 39.5% support mandated use of converged U.S. and international standards
• 18% believe the SEC should allow IFRS as an option for U.S. companies

Private company standards

• 66.5% believe a self-contained set of accounting standards should be available for private companies
• 54% are unsure about adopting IFRS for SMEs
• 43.7% of CPAs in public practice are unsure about recommending IFRS SMEs for their clients

Related news

• IFRS roadmap moving up the SEC’s priority list
• Private Company Committee suggests timing is right for separate GAAP

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