GAAP to IFRS, a question of when?
The timeline of converting to IFRS is sooner that you may realize.
2001: The International Accounting Standards Board (IASB) is established to work on international financial reporting standards (IFRS).
2002: U.S. and international standard-setters issue the Norwalk Agreement to make their current rules compatible.
2002: The European Union (EU) announces its member states must use IFRS for their 2005 financial statements.
2005: SEC chief accountant Donald Nicolaisen releases a road map for allowing IFRS filings without GAAP reconciliation for foreign firms by 2009 (or earlier).
2006: The IASB and FASB agree to work on all major projects jointly.
2007: In April, President Bush announces IFRS will be recognized in the United States within two years as part of an agreement with the EU. In November, the SEC makes that prediction a reality.
2008: The SEC will vote on a proposal mapping out a timeline for moving U.S. companies to IFRS.
2009: The IASB will end its moratorium for when companies need to adopt its new accounting standards. The board had frozen its rules while more countries adopted IFRS.
2011: The earliest that accounting firms and U.S. multinationals estimate large U.S. companies could begin to use IFRS rather than GAAP. Canadian, Indian, and Japanese companies are slated to begin using the global standards.
2013: The earliest projection by accounting firms for mandating that U.S. companies convert their financials to IFRS, with 2015 being the first year smaller companies could follow suit.