It will take five years to move from US GAAP
to IFRS, according to a US accounting institute.
The American Institute of Certified Public
Accountants (AICPA) made its estimation to the Securities and
Exchange Commission (SEC) as part of feedback regarding a time
frame for investor understanding of IFRS and the impact adoption
will have on issuers’ compliance and contractual agreements that
require US GAAP and governance.
The estimated five year time frame is on the
provision that the SEC will require two years of historical
comparative financial statements. However, the SEC has yet to
announce what the requirement will be.
In its letter to the SEC, AICPA said it
supports the goal of a single set of comprehensive accounting
standards and believes those issued by the International Accounting
Standards Board are best suited.
Next year the SEC will vote when and if the
CPA profession will be required to transition to IFRS for US public
companies financial reports. The regulator has so far not ruled out
allowing issuers to choose between IFRS or US GAAP and plans 2015
as the earliest date for the required use of IFRS by US public
companies.
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