Private companies in the US are warm to
the idea of a single set of globally accepted financial reporting
standards, according to new research by Deloitte.

More than 40 percent of 1,700 finance
professionals, mostly from private companies, responded to
questions during a Deloitte webcast stating that their companies
would take “positive action” when the International Accounting
Standards Board (IASB) completed its project on private entity

Almost 14 percent said they will consider
adopting IASB’s new standard in the near term, while 26 percent
indicated they will assess the costs and benefits of adoption. The
IASB project, expected to be completed later this year, is
predicted to be a simplified 250-page tailored version of full

“The interest in the IASB’s private entity
project is more than we had thought,” commented DJ Gannon, a
Deloitte US partner and national leadership partner of the firm’s
IFRS Solutions Center. “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.”

Nearly 85 percent of respondents said they
found something appealing about the project, including more than 33
percent that supported having a simplified, self-contained set of
accounting standards that are appropriate for private entities.
Close to 30 percent believed these standards will reduce their
financial reporting burden and just over 21 percent cited better
comparability for users of financial information.

“As we continue to discuss larger issues
around financial reporting, it’s important that we recognise the
needs of small businesses and the users of their financial
information,” said Gannon. “The IASB’s project on private entity
reporting could go a long way toward addressing many of these needs
by providing an easier, more user-friendly set of standards that
have the potential to help companies reduce costs, while at the
same time provide better information and more transparency to users
of private company financial information.”

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Twelve thousand public companies are awaiting
the SEC’s final decision on adopting IFRS. There are a larger
number of private companies that could adopt either full IFRS or
the private entities version.