IFRS uncertainty mounts in financial world

Most CFOs seem resigned to the rise of International Financial Reporting Standards (IFRS); it will become a reality. The issue is when. We noted last week that some experts think the time to start converting from GAAP is at hand. Some might quibble with that. To be sure, that's a fairly conservative view, but one that many would argue is wise. But there is still no drop-dead deadline for conversion.  

In fact, as CFO.com reports, there's not even a guidance-like rough estimate of when compliance will be mandated. But that is precisely what the accounting universe wants most. Hopefully, there will be some phase-in period. You would think there would have to be; the issues will be complex. The AICPA has called for a 3- to 5-year implementation timeline. To me, it seems like Sarbanes-Oxley all over again. And just to be clear, there will be some financial control issues. A lot of big companies have gotten their feet wet. CFO.com notes that some already are using IFRS to report in other countries. But smaller companies and audit firms are the ones most likely to end up in a massive scramble. We just might see a phased roll-out for accelerated and non-accelerated filers, similar to what we're seeing with Section 404. 

In any case, a real date would help. - Jim