Current status of the IFRS conversion in the US
By Tony Ouk on Jul 23, 2009
Welcome everyone to Oracle’s new blog devoted to Oracle Financials! To get us started, let’s talk about a topic that’s been stirring a lot of debate—the US conversion from GAAP to IFRS. For that, I recently sat down with Oracle’s resident expert on IFRS, Seamus Moran, and asked him a few questions about the current status of the US conversion from US GAAP to IFRS.
Question: What’s the latest on the US conversion to IFRS?
Seamus: Well, here’s what I know. The SEC published a draft IFRS road map in the fall of 2008, and entered it in the National Register (making it official) after Mr. Obama was elected. Comments were invited from the public, and the comment period ended in the early summer of 2009.
Question: So does that mean we’re close to a final roadmap?
Seamus: It is theoretically possible that SEC could publish the final roadmap anytime now, but pundits are predicting that they will take their time. They need to review and understand the input; and from what I’ve read, all sides are powerfully and eloquently represented. Some people are arguing that IFRS should not be adopted but that GAAP and IFRS should be allowed continue to converge. Others argue that the world needs one set of rules immediately. Some people argue for a rapid adoption; other argue that 2016 is too soon.
Question: So how are corporations reacting to all this uncertainty?
Seamus: Many companies have put their IFRS migration process into “wait and see” mode until the final roadmap is published; I’m voting for clarity as soon as possible!
Question: So where can people keep up with news and get the latest information on this topic?
Seamus: Well, the US conversion to IFRS is a very important topic here at Oracle, so a good resource is Oracle’s website dedicated to IFRS: http://www.oracle.com/applications/ifrs/index.html. There, people will find the latest news we’ve found on IFRS. Oracle has also worked with major accounting compliance advisors like PwC, Deloitte, and KPMG on informing people about this transition, so the website is a great resource to find information from them also.