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Posted by  in Financial Reporting

ifrsEdward Iwata of USA Today published an article this week that featured some interesting perspectives and quotes on IFRS (thanks to Jean S. of Charlotte for sharing!).

It is possible that US businesses (and foreign firms that conduct business here) will be required to adopt global financial reporting rules within 5 years.

So what info and quotes jumped out at the DARTON team following review of the article?

  • The impact of IFRS is likely to surpass that of the Sarbanes-Oxley Act of 2002
  • Whether US companies like it or not, the new era of global accounting appears unstoppable…
  • If companies don’t prepare, if they don’t start three years in advance, they’re going to be in big trouble” – Donna Street, Business Professor @ University of Dayton
  • Companies will need two to three years to upgrade their communications and software systems and to train many thousands of financial professionals
  • The global financial and economic crisis, by many accounts the worst since the Great Depression, only illustrates the urgen need for universal accounting and oversight” – Sir David Tweedie, Chairman of the International Accounting Standards Board in London
  • It is unclear whether President-elect Barack Obama will back IFRS or shelve the issue this year
  • Corporate America lags the rest of the world in global accounting.  In a recent Deloitte survey of 200 CFOs and other financial professionals, only 9% said their firms used IFRS.
  • “At first glance, a move to IFRS seems straightforward.  But it encompasses a company’s entire operations, including auditing and oversight, cash management, corporate taxes, technology and software” – D.J. Gannon, Partner @ Deloitte

Read the article “U.S. considers costly switch to international accounting rules” by Edward Iwata of USA Today (1.6.09) at http://www.usatoday.com/money/companies/regulation/2009-01-05-international-accounting-rule-switch_N.htm

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