When will the U.S. adopt/converge with IFRS?

• Author: Heffes, Ellen M.
• Position: INTERNATIONAL - KPMG International - International Accounting Standards Board - Interview

In an interview on May 27 with Henry Keizer, KPMG's Global Head of Audit, Sir David Tweedie, chairman of the International Accounting Standards Board, spoke about the future of International Financial Reporting Standards in the United States.

Despite a perceived drop in momentum for the U.S. to adopt IFRS, Tweedie said he believes the U.S. will make a decision within two years, and that not doing so risks diminishing American influence on the global economy.

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Some key points from the interview:

* Tweedie sees some drop in momentum toward IFRS in the U.S as a result of the economic crisis, but said that could change quickly once the U.S. publicly establishes a date certain for conversion. "Once people know it's going to happen and it's definite, they will be more willing to invest," to get their companies ready for international standards, he said.

* Tweedie said the ongoing work between IASB and the U.S. Financial Accounting Standards Board to converge U.S. and international accounting standards will make the transition in the U.S. a relatively smooth one. IASB and FASB have been converging standards in 11 key areas since 2002, and the work is expected to be completed by 2011.

* To the question of cost to adopt IFRS, Tweedie said conversion expenses are one time only and other countries have not found them onerous. He added that many large global companies are eager to use IFRS because it greatly reduces the costs of reconciling...