GFS LinkedIn
GFS Facebook
GFS Twitter
GFS RSS feed

Poll: IFRS viewed favourably by executives

Wednesday 12 October 2011 - by Andrew Hickley

Over half of senior executives view the IFRS accounting standards more favourably following the global financial crisis, a new survey has found.

The Association of Chartered Certified Accountants says that 58 per cent of investors and 52 per cent of chief financial officers and financial directors have a positive view about their benefits.

Published on Tuesday, the study surveyed a total of 163 senior executives from a wide range of industries, including the financial sector.

It found that just 6 per cent of CFOs and FDs and 11 per cent of investors believe the standards have had a negative effect on international trade. Respondents were roughly split from between the US, Europe, the Middle East and Asia.

But while respondents held more favourable views towards the adoption of the principles-based standards, the majority were neutral as to whether complying with IFRS outweighs the benefits involved with introducing them.

Sixty-one per cent of investors were either neutral towards the benefits compared with the costs, or said it was too early to tell, compared with 43 per cent of chief CFOs and FDs.

However, only 18 per cent of CFOs and FDs, and 7 per cent of investors, said they believe the costs outweigh the benefits of adoption. In comparison, 39 per cent of CFOs and FDs, and 31 per cent of investors, said that the advantages of compliance outweigh the negatives.

Commenting on the study, Acca chief executive Helen Brand urged the US Securities and Exchange Commission to adopt the standards, given their increasing sentiment amongst finance officials.

The SEC will make a decision about whether to endorse the standards later this year.

Brand said: "The growing support amongst CFOs and investors for global standards must be considered carefully by the Securities and Exchange Commission as it considers its decision about whether the US should adopt IFRS.

"We believe a positive answer from the SEC would give a tremendous boost to the cause of financial reporting and more importantly the world economy.

Article pages: |   1  |  2  |

Post as Anonymous
  Display name
Please, enter security code

No comments yet.