Regarding the move to IFRS, new SEC Chairwoman Mary Schapiro said in her confirmation hearing, "I will take a big deep breath and look at the entire area again carefully and will not necessarily feel bound by the existing roadmap that's out for comment". She said she has concerns about the timeline, the independence of the IASB and the quality of the standards.
The continued U.S. uncertainty on the move to IFRS is paralyzing, though any extra breathing room that comes from slowing down the process might be welcome news for many, especially given current economic challenges. The significance of the IFRS proposal warrants additional time to weigh - or reweigh - elements of the move towards IFRS adoption. There are well articulated arguments for and against U.S. adoption of IFRS. Both sides have merits and public comments on the roadmap should help focus the debate.
The timeline itself presents a problem. Expecting companies to invest in adoption efforts, but waiting until 2011 to make a final decision is unreasonable. There is not enough time between the decision date for moving forward with IFRS and mandatory adoption dates in the proposed roadmap. Only after the SEC is ready to move to IFRS and sets a date certain for its adoption, should it expect companies to devote resources to making the move.
Let us know what you think about slowing down the move to IFRS and the timing that is proposed in the SEC's roadmap.
