National survey finds that two-thirds of CFOs have no experience using IFRS, more than half are not familiar with XBRL
Experience gap a challenge in light of potential new regulations
CHICAGO, May 14, 2008 – A national survey of chief financial officers and senior comptrollers conducted by Grant Thornton LLP, the U.S. member firm of Grant Thornton International, found that 75 percent of respondents have no experience preparing financial statements according to International Financial Reporting Standards (IFRS). Only 43 percent were familiar with eXtensible Business Reporting Language (XBRL).
These findings identify an “experience gap” that will pose a challenge for the SEC as it seeks to promulgate new rules related to allowing U.S. issuers to prepare financial statements in accordance with IFRS, and phasing in the adoption of XBRL by issuers. The national survey points to the need for issuer education when proposed rules related to IFRS and XBRL are promulgated and implemented.
| Do you have experience preparing financial statements according to International Financial Reporting Standards (IFRS)? | ||
| Yes | 19.37 % | |
| No | 74.77 % | |
(Note: In 2007, the SEC began allowing foreign companies to submit their IFRS-prepared filings without reconciling them to U.S. GAAP.)
| Are you familiar with eXtensible Business Reporting Language (XBRL), referred to by the SEC as "Interactive Data"? | |
| Yes | 43.24 % |
| No | 55.41 % |
| Does your company report financial results using XBRL? | |
| Yes | 2.25 % |
| No | 95.95 % |
| If not, do you have plans to report using XBRL in the next six months? | |
| Yes | 3.15 % |
| No | 85.59 % |
| If the SEC makes filing in XBRL format mandatory, what is the first year's results for which you expect such filings to become mandatory? | |
| 2008 | 3.60 % |
| 2009 | 14.41 % |
| 2010+ | 70.27 % |
| Do you believe that accounting standards today are too complex? | ||
| Yes | 69.37 % | |
| No | 27.03 % | |
| Public companies – Yes | 81.40 % | |
| Public companies – No | 18.60 % | |
| Private companies – Yes | 69.41% | |
| Private companies – No | 30.59 % | |
| Which of the following types of standards would you prefer? | ||
| Principles-based standards that provide for use of professional judgment in the application of accounting standards | 55.86 % | |
| Principles-based standards that provide for use of professional judgment in the application of accounting standards | 39.19 % | |
For more information on these topics, visit Grant Thornton’s XBRL Resource Center and IFRS Resource Center.
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About the Survey
Grant Thornton LLP conducted the national survey from March 10 through March 28, 2008 with 222 chief financial officers and senior comptrollers.
About Grant Thornton LLP
Grant Thornton LLP is the U.S. member firm of Grant Thornton International Ltd, one of the leading global accounting, tax and business advisory organizations. Through member firms in more than 80 countries, including 50 offices in the United States, the partners and employees of Grant Thornton member firms provide personalized attention and the highest quality service to public and private clients around the globe. Visit Grant Thornton LLP at www.GrantThornton.com.
