When it comes to the adoption of global standards, there’s nothing new about the notion of “convergence,” according to D.J. Gannon, partner, Deloitte & Touche LLP, and leader of Deloitte’s IFRS Center of Excellence. The key question for the SEC and policy makers, says Gannon, is whether we adopt IFRS or continue down the “convergence path.” Gannon points out that the path to convergence has at times led U.S. GAAP and IFRS to part ways as they relate to certain standards – a worrisome development, he asserts. ###

After being followed at a measured pace for most of the past decade, the schedule for implementing International Financial Reporting Standards (IFRS) within the U.S. has accelerated over the past year or two. Two bellwether events: Last year, the U.S. Securities and Exchange Commission (SEC) allowed some foreign issuers that file financial reports with the SEC to use IFRS without reconciling to U.S. Generally Accepted Accounting Principles (GAAP), as had been required. Then, last August, commissioners voted to publish a “road map” outlining the move to IFRS for publicly traded companies within the U.S.

However, with the economy in a tailspin and both regulators and CFOs focused on survival and recovery, it’s likely that the time frame may be extended. David Kaplan, leader of PricewaterhouseCoopers LLP’s International Accounting and SEC Services Group, recently fielded a few questions concerning the adoption of international standards by American companies. ###

Sam Silvers of Deloitte Consulting recently visited with us on West 17th Street here in NYC. We knew he’d have an insightful take on how the downturn is impacting finance, so we couldn’t resist inviting him into our video white box. Remember, the white box tour of duty may look easy, but it’s not. How would you answer these questions?