Worries about IFRS audit burdens mount

Given the ongoing financial crises, concerns about the transition to International Financial Reporting Standards have taken a back seat, but not completely. There is mounting concern about the principles behind the new standard and what it means for the audit process, this at a time when a lot of companies have just hit a steady state regarding Sarbanes-Oxley and audits.

The general concern seems to be that the lack of hard-and-fast rules will lead to a much heavier disclosure burden--not to mention auditor bill. The classic example, given by Financial Week, is leases. Some are treated as a cost, some are treated more as an investment. Under GAAP, there is a specific test, but under IFRS, the issue is determined by intent. This could get tricky and make more than a few auditors antsy. Multiply this against all the other issues, and we're looking at an onerous process.   

For more:
- here's the article

Related Articles:
What exactly does the IFRS transition entail?
A delay in IFRS timetable release
IFRS switch: Lessons from Sarbanes-Oxley