U.S. execs welcome the clarity of the SEC's new timetable for switching from GAAP to international standards. But adopting new ways won't be easy or inexpensive
Searching for what he called a "lingua franca" of financial statements, Securities & Exchange Commission Chairman Christopher Cox announced on Aug. 27 a road map by which U.S. companies may report their numbers using international accounting rules beginning in 2009. The convergence of the U.S. rules, known by the acronym GAAP, for "Generally Accepted Accounting Principles," and international ones has been inching along for more than a decade. But the specific timetable laid out by the SEC's new proposal, which will be open for comment until a final vote in 60 days, gives the process added certainty.
That came as a relief to many companies and audit firms that are looking for a clear direction. "What I've heard consistently from my clients is, 'We just need to know,'" says Todd Markus, vice-president for accounting, finance, and enterprise governance at the New York financial consulting firm Accretive Solutions.
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