From the Sounds of It, Small Companies Better Learn to Love IFRS

Posted on by Caleb Newquist

SEC Chief Accountant James Kroeker is "hopeful" that the SEC can figure something out re: IFRS in the coming months but if you're a controller/CFO type at a small company who thought that this wasn't going to be your problem, Jim has news for you:

He downplayed the notion of smaller firms being able to opt out indefinitely if U.S. adoption went ahead. "Having a model that works for everyone, even if there is a delay in timing, is important, otherwise you ingrain the idea that the smaller companies will never have to change and you end up with a two GAAP system permanently in the U.S.," he said.
At least that will make the decision process easy.
 

 

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SEC Needs More Time to Get Their Heads Around IFRS

A recommendation on whether U.S. companies should switch to international accounting rules will take a few more months, the Securities and Exchange Commission’s chief accountant said Monday. The SEC’s staff had been expected to make a recommendation by year-end on whether U.S. companies should adopt the global rules, known as International Financial Reporting Standards. But the staff needs “a few additional months” to complete its work, SEC Chief Accountant James Kroeker said. [WSJ]

Japan Getting Cold Feet on IFRS

On the day of Sir David Tweedie’s retirement, no less.

The Journal reports:

Japan is considering postponing the mandatory introduction of global accounting standards for all listed companies beyond the original target date of 2015, amid strong opposition to the change from the country’s business community. Japan’s financial services minister, Shozaburo Jimi, said Thursday at a Business Accounting Council meeting, hosted by the Financial Services Agency, that making Japanese companies adopt the rule—known as the International Financial Reporting Standard—within a few years could be a big burden and costly for businesses. “If Japanese firms are required to move to IFRS, we will need enough time, five to seven years, for preparation,” Mr. Jimi said, adding that discussions over the matter will take time.

Japan May Delay Accounting Shift [WSJ]