Study Finds the Global Financial Crisis has Increased Support for IFRSs
The Association of Chartered Certified Accountants (ACCA) has published a survey showing among other results that the International Financial Reporting Standards (IFRS) are more favourably viewed following the global financial crisis.
163 senior executives from a wide range of industries, including the financial sector, from the US, Europe, the Middle East and Asia took part in the survey that was designed to gauge support for of global standards. The findings were complemented with in-depth interviews with nine executives and investors. According to the study the main results of the survey were:
- Increasing familiarity with global standards in financial reporting continues to break down resistance to their implementation.
- The effect of the financial crisis has been to improve perceptions of global standards among investors and issuers.
- Investors favour global auditing standards.
- Rising demands from investors and customers for greater disclosure is fuelling an appetite for global standards in non-financial reporting.
- Executives believe that global standards or benchmarks in corporate governance would encourage more 'long-term' thinking.
- Although a more distant aspiration, there is a clear recognition of the potential benefits of integrated reporting.
In the foreword to the study, ACCA CEO Helen Brand comments on the results and argues, that they are a clear sign that the US Securities and Exchange Commission should adopt the IFRSs.