Thursday, June 4, 2009

Tweedie: Global Politics and Economics will Force U.S. to Adopt IFRS in a Year—by 2011

The SEC IFRS Roadmap provides for the U.S. to adopt IFRS by 2014. Recently, doubt has been cast on that date by many U.S. issuers. However David Tweedie, chair of the IASB says the U.S. may be forced to adopt IFRS to adopt by 2011 because of political and economic pressure.

Tweedie spoke to Hofstra University students during a KPMG webcast on the status of IFRS convergence, playing u down the "IASB vs FASB" / "FASB vs IASB" fight.

Tweedie said: “Regardless of when the United States decides [to converge], you have Canada moving, Korea, India and Japan — and they all want us to finish in 2011, so this not just a U.S. thing,” said Tweedie. “They’re going to finish. Brazil goes in 2010.” He also said that this year Chile and last year Israel had completed convergence, while Mexico and Argentina will have completed convergence by 2012. China completed in 2007. Altogether 117 countries are currently using the system. “There’s one big economy missing … and that’s this one,” he quipped, “In 2011, we’ll be pretty close.” ...the U.S. will finish convergence by mid-2011”.

As far as the FASB/IASB funding and political dominance fights, Tweedie said that “All it needs is a partnership between the two.”

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