- Major Challenges for IFRS Adoption Still Exist -

- Communication, Global Planning and Training Crucial to Meet Standard Requirements -

FLORHAM PARK, N.J., March 9 /PRNewswire/ -- While many financial executives have begun the initial stages of convergence with International Financial Reporting Standards (IFRS), early adoption in 2009 for qualifying companies will be difficult, if not impossible, due to the significant time requirements, according to a new report released today by Financial Executives Research Foundation (FERF) and Resources Global Professionals. The report also finds that a crucial milestone for companies will be the SEC's anticipated 2011 decision on whether or not mandatory adoption of IFRS is in the public interest.

The new FERF Study, entitled, 'International Financial Reporting Standards: A Project Plan for U.S. Companies,' is the first in an information series FERF is publishing to provide practical professional education on IFRS. The report highlights current IFRS-related efforts of U.S. public companies in compliance with the multi-year Roadmap for the Potential Use of Financial Statements Prepared in Accordance with International Financial Reporting Standards by U.S. Issuers (Roadmap) released by the SEC in November 2008. The data was primarily compiled from a gathering of 30 U.S.-based public companies during which the discussion focused on challenges and best practices related to IFRS.

'The timing of the SEC's Roadmap will have a profound impact on the finance profession, and professionals will be closely watching to see how the economic crisis that had escalated subsequent to the IFRS session will affect the ultimate timeline,' said Marie Hollein, President and CEO, Financial Executives International and FERF. 'Our report not only provides a summary of what U.S. companies are doing to get ready for IFRS in advance of a final Roadmap, but the key concerns our community is facing -- these need to be kept top of mind as the new SEC leadership makes decisions related to IFRS.'

Roadmap Challenges and Top Concerns

The report revealed that early adoption of IFRS is unlikely for companies due to the current constraints in the proposed Roadmap. Project leaders meeting last fall noted that uncertainty on the outcome of the 2011 SEC evaluation, particularly the possibility of forgoing the adoption to IFRS and maintain its requirement to file under U.S. GAAP, was a key reason for their decision, considering the significant disincentive it provides for companies that choose to adopt early.