US investors expect that the country will eventually adopt International Financial Reporting Standards (IFRS), but that the process will take time and need substantial investment in staff and training, finds new research from ACCA (the Association of Chartered Certified Accountants) published today in a report called IFRS in the US: An investor’s perspective [1].
The research was conducted for ACCA by Forbes Insights, surveying nearly 500 US-based investors.
57% of investors expect that the SEC will one day require reporting under IFRS, with more investors agreeing than disagreeing that the long term benefits of adoption would outweigh the costs – 41% against 29%.
Sue Almond, Technical Director at ACCA says: “More investors believe the eventual adoption of IFRS in the US will result in a net benefit to the US economy than not. In ACCA’s view, 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. ACCA has repeatedly called for putting investors at the heart of the standard-setting process globally, and this is why we commissioned this research, to understand what US investors thought about the future of IFRS in the US.”
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.”
Key findings
The most significant challenges identified by investors are the one-off transition matters, while longer-term concerns are rated less highly.
Sue Almond adds: “While there are clearly challenges and reservations highlighted in the survey, attitudes to IFRS appear to be changing in the US, irrespective of any action by the SEC. The more familiar investors are with IFRS, the more confidence they have in the standards, which echoes the experience in countries that have already adopted IFRS.”
Questions remain for the future, as looking ahead ACCA’s report also identified the issues that are most responsible for shaping US investors’ attitudes towards IFRS. By order of significance, these are:
Sue Almond concludes: “A better understanding of global standards produces greater assurance – and it will also prompt more investors to learn about the International Accounting Standards Board and the work they are doing on convergence. The accountancy profession – on the global stage as much as in the US – will have a significant role to play in educating the business community about global standards and needs to prepare for this.”
---
For more information, please contact:
Helen Thompson, ACCA Newsroom
+44 (0)20 7059 5759
+44 (0)7725 498654
helen.thompson@accaglobal.com [2]
Notes to editors
About the report:
About ACCA – www.accaglobal.com [3]
About Forbes Insights
Forbes Insights is the strategic research practice of Forbes Media, publisher of Forbes magazine and Forbes.com, whose combined media properties reach nearly 50 million business decision makers worldwide on a monthly basis. Taking advantage of a proprietary database of senior-level executives in the Forbes community, Forbes Insights’ research covers a wide range of vital business issues, including talent management, corporate social responsibility, financial benchmarking, risk and regulation, and doing business in emerging markets.
Links:
[1] http://www.accaglobal.com/content/dam/acca/global/PDF-technical/financial-reporting/pol-afb-iusip.pdf
[2] mailto:helen.thompson@accaglobal.com
[3] http://www.accaglobal.com/
[4] http://www.forbes.com/insights