Deloitte: U.S. Companies Anticipate Mandatory Move to IFRS

http://www.reuters.com

D.J. Gannon, partner, Deloitte & Touche LLP, national leader
Deloitte IFRS Center of Excellence

A new Deloitte survey of more than 245 financial executives shows that almost 90 percent view mandatory conversion to International Financial Reporting Standards (IFRS) to be highly likely, or somewhat likely, in the U.S., with 59 percent viewing mandatory conversion as highly likely.

The Deloitte survey, conducted in July 2009, gathered data and information on current views about IFRS in the U.S. and activity around IFRS planning. The survey addresses the high level of anticipation surrounding SEC action on IFRS, as well as companies' advanced IFRS planning and conversion activities.

In addition, 80 percent of respondents are currently taking action, or planning to take action toward IFRS conversion. Forty percent is either performing or having performed a high- level IFRS assessment, while another 40 percent said they plan to perform an assessment in the future. In addition, more than two-thirds (67 percent) of those surveyed have designated a person or team to focus on IFRS, or monitor IFRS developments. Only 20 percent of respondents indicated no plans for IFRS assessment activities.

"Convergence of accounting standards was underway well before the financial crisis hit. However, the current focus on restructuring the financial industry puts increased pressure and immediacy on driving IFRS convergence," said Gannon.

"U.S. companies, in the meantime, are keeping a close eye on the global trends and mobilizing around IFRS. Those companies with plans and strategies in place will not only be better equipped to address IFRS-related changes, but they will also reap the benefits of IFRS sooner."

Download the full survey at:
http://www.deloitte.com/assets/Dcom-UnitedStates/Local%20Assets/Documents/AERS/us_aers_IFRS_%20Survey%20Results_020909.pdf

IFRS Pulse Survey 2009: Update on Views and Activities http://www.deloitte.com/us/ifrs/results2009update