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Posted by  in IFRS

ifrsThe DARTON team read an interesting IFRS article that was posted yesterday (November 17, 2008) by Financial Week.

In the article, writer Matthew Scott cites the SEC who estimates that the transition from U.S. GAAP to IFRS (International Financial Reporting Standards) will cost each early adopter $32 million over the first 3 years of filing form 10-K under IFRS.

An estimated 110 companies are eligible to begin using the new standards as early as 2009 – with all U.S. publicly traded companies required to use IFRS by 2014 (according to the SEC roadmap that was released this past Friday, November 14).

So what costs contribute to the $32 million price tag for early adopters?

  • Expenses to determine the effects of adopting IFRS
  • Systems changes
  • Potentially higher cost of accounting staff
  • Outside consultants & auditors who understand IFRS
  • Possible cost of switching to an audit firm with proper experience in IFRS reporting

Read the Financial Week article at http://www.financialweek.com/apps/pbcs.dll/article?AID=/20081117/REG/811179967/-1/FWDailyAlert01.

Read more about the SEC’s IRFS roadmap as published on November 14, 2008 (courtesy of AICPA) at http://ifrs.com/.

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