International Accounting Standards Board (IASB) chairman Hans
Hoogervorst is optimistic international accounting standards will
soon be adopted in the US with Japan and India not being far
behind.
Hoogervorst warned the scale of pain felt by companies going
through the process of replacing US GAAP could feel like “Chinese
water torture” if IFRS adoption was carried out piecemeal. The
chief standard setter noted there needs to be a clear end point to
the process.
Speaking at the Economist CFO Summit in London, Hoogervorst told
delegates US Securities and Exchange Commission chief accountant
James Kroeker had been positive about the odds of the US adopting
IFRS and that a decision will be made in the Spring.
Hoogervorst cautioned that he did not expect the US to adopt IFRS
“lock, stock and barrel” within the next three years and that
advice would be sought from the Financial Accounting Standards
Board.
Hoogervorst said the European Commission’s plans to further
safeguard the audit market were a step in the right direction,
specifically plans to speed up the rotation of auditors and limit
the amount of non-audit services accountancy firms provide to audit
clients.
