Never Mind the GAAP

Back in November, Ernst & Young Chairman and CEO James Turley wrote an op-ed, "Mind the GAAP," in The Wall Street Journal laying out his argument in favor of having U.S companies file their financial reports using International Financial Reporting Standards (IFRS) in lieu of U.S. Generally Accepted Accounting Principles (GAAP). Since then, the likelihood of the SEC requiring this change -- probably by 2013-- appears to be a certainty.

The primary challenge for finance functions relates to IFRS knowledge and skills. To meet that need, public accounting firms and also some universities are ramping up informational training and services offerings. I mentioned KPMG's IFRS Institute in my May 3 entry. Other large public accounting firms including PricewaterhouseCoopers, Grant Thornton, Ernst & Young, and Deloitte also have IFRS information. Part of Ernst & Young's IFRS portal links to a bi-monthly publication, "IFRS outlook," on all things IFRS.

Deloitte's IFRS University Consortium is an effort that seeks to integrate IFRS into accounting curricula. Ohio State and Virginia Tech are currently working with the Consortium in the development of course materials, guest lectures, and other resources.