Seventy-five percent of corporate financial executives will wait until International Financial Reporting Standards are mandated as the standard for filing financial reports before switching from U.S. generally accepted accounting principles, even if the Securities and Exchange Commission permits early adoption.
Nearly half expect the SEC to reach a decision on IFRS in 2011, and 94% said that if the decision is made next year, that would give them enough time to accomplish early adoption of IFRS by 2016.
“This survey reflects a sense of confidence that those involved in the financial reporting process will be ready to implement IFRS when required, as long as the SEC provides sufficient time once a decision is made,” said KPMG Partner and National IFRS Leader Janice Patrisso.
Eighty-eight said IFRS will enable them to compare financial statements from companies around the world. However, 65% of the executives are concerned about the cost of implementation, and 30% said their companies had not yet assessed how IFRS will affect their companies.