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Give us an IFRS adoption date requirement!

November 16, 2008

It was reported that the SEC would issue its final IFRS adoption rule a week ago Friday (11/7/2008), but they have not yet done so. Their proposed rule stated that certain companies could adopt IFRS as early as 2009 and more could follow beginning in 2011, but the SEC proposed that their decision to adopt IFRS would not be affirmed until 2011.

If you were CFO of a company that is eligible to adopt IFRS early, but the possibility existed that the IFRS requirement could by unwound in 2011, would you want to adopt early? I wouldn’t. Can sufficient momentum toward adoption of IFRS exist without a mandatory adoption date? I doubt it. Some progress can be made with an anticipated adoption date, but we really need a date certain for migration to IFRS to be taken seriously.

I recognize that we are in trying times with the credit situation that exists today, but if we do not adopt IFRS in a timely manner, our capital markets may become less competitive in a worldwide economy, especially since over 100 countries either allow or require IFRS today. Can we afford to put our capital markets increasly at risk?

SEC, give us a date certain for IFRS adoption!

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