The leading knowledge platform for the financial technology industry
The leading knowledge platform for the financial technology industry

A-Team Insight Blogs

Significant Number of Companies Interested in Consolidated Standards for IFRS Reporting, Says Deloitte

A “significant” number of US private companies are interested in the introduction of accounting standards based on International Financial Reporting Standards (IFRS), according to a recent online poll by consultancy firm Deloitte & Touche. The poll, which took place during a webcast with around 1,700 finance professionals, indicated that 40% of respondents were considering taking positive action towards adopting the standards.

According to the results, 14% said they would consider adopting the International Accounting Standards Board’s (IASB) new standards in the near future, while 26% said they would assess the costs and benefits of adoption. The IASB is currently working on a project around private entity reporting, which is expected to be completed later this year and is due to result in a simplified version of full IFRS for the US market.

Meanwhile, the Securities and Exchange Commission (SEC) has recently taken the decision to extend the comment period by two months for responses to its proposal to allow US corporates to use the IFRS standards. Firms have until 20 April to provide feedback and amendments to the proposals for a roadmap that would have them filing financial results under IFRS by 2014.

DJ Gannon, partner at Deloitte & Touche and national leadership partner of the IFRS Solutions Centre, reckons the poll results bode well for the future of IFRS in the US market. “It indicates that US private companies are responsive to having standards geared specifically toward their needs, which may be different from that of public companies,” he explains.

Around 85% of respondents found something appealing about the IASB project, including 33% that were keen on the idea of having a simplified, self-contained set of accounting standards that are appropriate for private entities, says Deloitte. Of the respondents, 30% believed these standards would reduce their financial reporting burden, and just over 21% cited better comparability for users of private company financial information.

Related content

WEBINAR

Upcoming Webinar: Evolution of data management for the buy-side 2021

Date: 27 May 2021 Time: 10:00am ET / 3:00pm London / 4:00pm CET Duration: 50 minutes The buy-side faced a barrage of regulation in 2020 and is now under pressure to make post-Brexit adjustments and complete LIBOR transition by the end of 2021. To ensure compliance and ease the burden of in-house data management, many...

BLOG

How to use the LEI to Solve your Onboarding Problems and Cut Costs

Client onboarding and lifecycle management are an ongoing problem at many financial institutions, with inefficiencies often caused by layers of technologies and processes added to capture required data and avoid fines when new rules and regulations are introduced. A solution to the problem, which could save the global banking industry billions of dollars a year...

EVENT

Data Management Summit London

The Data Management Summit Virtual explores how financial institutions are shifting from defensive to offensive data management strategies, to improve operational efficiency and revenue enhancing opportunities. We’ll be putting the business lens on data and deep diving into the data management capabilities needed to deliver on business outcomes.

GUIDE

Fatca – Getting to Grips with the Challenge Ahead

The industry breathed a sigh of relief when the deadline for reporting under the US Foreign Account Tax Compliance Act (Fatca) was pushed back to July 1, 2014. But what’s starting to look like perhaps the most significant regulation of the next 12 months may start to impact our marketplace sooner than we think, especially...