IFRS Survey 2009 for Private Companies
More than half (51 percent) of small and mid-size private company respondents (revenues less than $1 billion) support separate accounting standards for private and public companies.
A Deloitte survey was conducted in June 2009 to gather data and information about the challenges of current U.S. Generally Accepted Accounting Principles (GAAP) and the level of interest in International Financial Reporting Standards (IFRS) for private companies. The survey of private companies shows many respondents support separate accounting standards for private and public companies, yet a significant number of respondents are still unaware of the International Accounting Standards Board’s (IASB’s) newly issued standard, IFRS for Small and Medium-Sized Entities (“IFRS for SMEs”). Interest among private companies for having a separate set of accounting and financial reporting standards could increase further with more education.
Highlights of the survey report include:
Small and mid-size private companies (referenced here as “SME respondents”) include companies with less than $1 billion in revenues.
- 51percent of SME respondents believe that there should be separate accounting standards for public and private companies.
- 43 percent of SME respondents are not aware or don’t know of the IASB’s standard IFRS for SMEs, indicating the need for more education.
- SME respondents view fair value measurement (42 percent), accounting for income taxes (23 percent), and consolidations (10 percent) as the top areas of U.S. GAAP in need of simplification.
- 10 percentage of SME respondents either currently use IFRS or would consider adopting IFRS for SMEs in the near term, while 63 percent would adopt when required.
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