TAKE A DEEP BREATH – AND THEN GO AHEAD

Written by Greg Millman from IFRS reporter.com

That's former SEC Chairman David Ruder's message to newly appointed SEC Chairman Mary Schapiro. In a frank interview with IFRS Reporter, Chairman Ruder talked about why IFRS adoption by companies is inevitable. He acknowledged that it may not take place on the timetable laid out in the SEC Roadmap, but insisted that it will take place. Why? The alternative would be to put U.S. companies at a disadvantage in the capital markets. Few major U.S. companies have shown any eagerness to transition to IFRS. But that may change because IFRS often allows companies to report higher earnings than GAAP. There aren't many other ways to report higher earnings in a deepening recession. So IFRS could look better and better to companies as the financial squeeze tightens. Click here to listen to the highlights to learn: How the financial crisis affects the international accounting agenda Why accounting convergence is pointless without auditing convergence--a task that has barely begun. What threats to IASB independence will make the FASB necessary even if the U.S. eventually adopts IFRS How Paul Volcker brought the bacon home for the IASB A Q&A text and will be available shortly. The full interview is available here: Part 1, Part 2