Contrary to what many have said since Mary Schapiro took the reins at the Securities and Exchange Commission last year, the U.S. will still adopt the International Financial Reporting Standards. It just may not happen as quickly as regulators originally thought. In fact, the SEC's new chief accountant, James Kroeker, says the current economic crisis demonstrates the growing need for global standards.
CFO.com's Marie Leone reported last week that Kroeker told a meeting of the New York State Society of Certified Public Accountants that IFRS is still a Securities and Exchange Commission priority. He explained that the roadmap is "a loose time line for transition." Yes, the economy may have distracted regulators from the process, but now, according to Kroeker, they see more clearly why global standards are necessary. The crisis is a global one, and the strategies and solutions that have been discussed and implemented thus far have also been international in scope.
That said, however, the transition is not to be rushed. Kroeker indicated that most companies will not be expected to comply until 2016 at the earliest.