IFRS will Ultimately be Adopted in US, as per US-based Investors
ACCA has mentioned that US Investors are expecting the will ultimately accept International Financial Reporting Framework (IFRS), however, this will take time as well as huge amount of investment in personnel and their training. Almost 500 US-based investors were surveyed, as per survey mostly are expecting the Security Exchange Commission(SEC) will eventually require the companies to report under IFRS. More investors were inclined towards the fact that the strategic benefits of adoption would prevail over the costs, according to the report found.
"US adoption of IFRS would give a tremendous boost to the cause of globally comparable financial reporting, and more importantly, the US and world economies," said Sue Almond, technical director at ACCA.
According to Investors it would take around four and half years for the companies to be prepared for the adoption of IFRS and furthermore the knowledge of IFRS among US-based investors is moderate.
Hans Hoogervorst, chairman of the IASB, said: "The ACCA's findings are consistent with anecdotal feedback we hear from the US investor community. They also lend further credence to the argument that the US is well prepared for a successful transition to IFRS."
Almond added: "While there are clearly challenges and reservations, attitudes to IFRS appear to be changing in the US, irrespective of any action by the SEC."
AICPA chairman of the board of directors Gregory Anton said that IFRS adoption in near future is impossible. He added that AICPA supports US companies the option to use IFRS but notified that it would not be adopted completely sooner than five to six years.