The notion of U.S. companies "switching" to IFRS over the next few years might become moot, if efforts to converge U.S. and international accounting standards are successful.
Marie Leone, CFO Magazine
December 1, 2009
Hi Marie, I think the GAAP/IFRS convergence efforts have, for the most part, been a good thing as more companies become more global. And, with the pace at which we've been moving there, companies have been able to make the investments in the additional financial reporting costs as it makes economic sense for them. All good, and as it should be. What worries me is a highly potential regulatory mandate to make everyone move to IFRS at once--and put an additional $10 billion to $25 billion in the pockets of the "Big Four" Public Accounting firms, that should be going to into the coffers of shareholders instead. Please refer to my recent post, "Behind Closed Doors" to see my "Back of the Envelope" calculations of the $10 - $25 billion Cost of Conversion. http://saramcintosh.wordpress.com/2010/01/20/behind-closed-doors/ I would love to see CFO Magazine take up the charge to stop the unnecessary cost of conversion, and let the inevitable costs of convergence take place as makes economic sense. Ciao for Now, Sara McIntosh
Posted by Sara McIntosh | January 22, 2010 11:24 am© CFO Publishing Corporation 2009. All rights reserved.