U.S. Executives Want Option for Early IFRS Adoption, According to KPMG IFRS Institute Survey

NEW YORK, March 9 /PRNewswire/ -- While the majority of executives surveyed see a need for greater clarity about the Securities and Exchange Commission's plans for International Financial Reporting Standards (IFRS), nearly half of those polled by KPMG's IFRS Institute say they would like the option for "early adoption" once the SEC decides to require or permit U.S. companies to use IFRS.

"The SEC's recent statement supporting a single set of high-quality global financial reporting standards and ongoing consideration of the incorporation of IFRS into the U.S. financial reporting system has focused executives on what this change would mean for their organizations," said Janice Patrisso, partner and National IFRS Leader at KPMG LLP, the audit, tax and advisory firm.  

"While some uncertainty remains, companies are not slowing their IFRS conversion activities, with 49 percent of respondents saying they'd like the ability to adopt IFRS earlier than the anticipated 2015 or 2016 implementation date targeted by the SEC work plan and only 18 percent saying they will delay their IFRS plans based on the SEC's Feb. 24 announcement," Patrisso said.

In the KPMG IFRS Institute poll taken during a webcast attended by more than 2,500 executives two days after the SEC's announcement, 59 percent of respondents indicated that the potential IFRS implementation in 2015-16 would give their organizations enough time to prepare for the change.  Only 15 percent indicated it would not be enough time, with a quarter unsure of the impact.

While executives were comfortable with the timetable, the majority of respondents said they needed more clarity on the SEC's plans. Eighty-two percent said the SEC action either did not provide enough clarity on how IFRS would be implemented for U.S. companies (29 percent) or they were undecided (53 percent) about whether the SEC statement helped clarify things. Only 16 percent of respondents believed the SEC provided enough clarity on where the United States was going on IFRS.

On the question of general support for U.S. adoption of IFRS, 41 percent of respondents said the SEC should adopt IFRS, versus 22 percent who said the agency should not, with the remaining 36 percent undecided.

"Much work needs to be done before a U.S. change to IFRS," added Patrisso.  "As this activity progresses, companies should make sure they have a good handle on their IFRS needs in order to have a smooth transition that will affect every area of their organization."

About KPMG LLP

KPMG LLP, the audit, tax and advisory firm (www.us.kpmg.com), is the U.S. member firm of KPMG International Cooperative ("KPMG International.")  KPMG International's member firms have 140,000 professionals, including more than 7,900 partners, in 146 countries.

Editor's Note:  KPMG's IFRS Institute is holding a series of public Webcasts providing further context and information about differences between IFRS and US-GAAP, including the "History of IFRS Framework and General Differences," scheduled for Thursday, March 11, 2010 at 12:00 PM to 1:00 PM (EST).

Additional scheduled IFRS Webcasts include:

• April 20, 2010 -- "IFRS 1"
• May 19, 2010 -- "Stock Compensation"
• June 22. 2010 --  "Inventories and Accruals"
• July 15, 2010 -- "Development costs and Intangibles"
• August 11, 2010 --  "Revenue recognition"
• September 16, 2010 -- "Fixed Assets and Fixed Asset impairments"
• October 14, 2010 -- "Pensions, termination benefits and other provisions"
• November 11, 2010 -- "Income Taxes"
• December 16, 2010 -- "Financial Instruments"
• January 13, 2011 -- "Leases"

SOURCE KPMG LLP