KPMG IFRS Survey: High Support, Low Understanding by Execs

KPMG has published a survey showing widespread support for IFRS. The survey shows that investors, analysts and corporate executives involved in preparation of financial statements are positive about the ultimate impact of the IFRS Roadmap.

Under the SEC’s IFRS Roadmap, certain companies could begin using IFRS this year, and large accelerated filers could be required to use IFRS for financial reporting periods ending on or after Dec. 15, 2014.

Notes from the survey:

• 65% of analysts and investment executives expect IFRS to make the U.S. capital markets more attractive to foreign investors
• 68 % of investors and analysts expect more transparency
• Only 25% of executives believe foreign investors will find the U.S. markets more attractive.
• 57% of investors and analysts surveyed believe the timeline proposal announced by the SEC in November to be “about right,”
• 18% said that the SEC timeline proposal wasn’t aggressive enough
• 55% of corporate executives agree with the timeline
• 8% of corporate executives feel that the timeline is “too long.”

As far as understanding IFRS:

• 16% of investors and analysts feel that currently have a solid understanding of IFRS
• 20% of financial executives said they have a solid understanding of IFRS
• 77% of analysts and investors said they want companies to begin explaining their IFRS conversion plans at least one-to-three years prior to the change