The top three reasons cited by these companies for choosing to make the transition to full IFRS are comparability with global competitors, the spread of their shareholder base and management efficiency. In the near future, about 25 per cent of the Japanese market capitalisation is expected to have adopted full IFRS. In Japan, the number of companies voluntarily switching to full IFRS has significantly increased in the recent past. IFRS is also used extensively in the few remaining major jurisdictions that do not yet require the use of IFRS. These findings are 2 consistent with other post-IFRS assessments undertaken by other adopting countries, such as Canada and Korea. Most respondents argued that the introduction of IFRS has resulted in improvements to the quality and consistency of financial reporting across the European Union. The more than 200 responses it received are very encouraging. The European Commission has recently undertaken a consultation on Europe’s experience of IFRS. In Europe, it is 10 years since the then 25 Member States simultaneously made the transition from national accounting standards to IFRS. For most of these jurisdictions, IFRS is no longer a new development it’s just business as usual. It shows that 114 countries now require the use of IFRS for all or most publicly listed companies. Our latest research has analysed the financial reporting requirements of 138 countries. Today, the situation has vastly improved. Investors were easily misled it was a mess. Before IFRS, the accounting for the most basic metrics, such as revenue and profit, differed significantly depending on where in the world that company was listed. Capital markets around the world are closely coupled and interconnected. Progress towards global standardsįirst, global standards. Hopefully we can carry over these themes to the panel discussion that will follow. I will offer some perspectives on the causes of complexity and what we are trying to do about it. I hear these concerns wherever I go and I know they exist here in Switzerland as well. Tonight, I will provide you with a brief update on our work to establish IFRS as the global standard for financial information.Īt the same time, we are not deaf to concerns about increasing complexity and disclosure overload in financial reporting. IFRS has had a transformative effect on the quality and consistency of financial reporting around the world, including Europe. The theme of this evening’s event is ‘IFRS in Continental Europe’. Let me begin by thanking our co-hosts, the Swiss Institute of Certified Accountants and Tax Consultants, and the leadership of the Swiss GAAP FER Foundation for their ongoing co-operation. Ladies and gentlemen, distinguished guests, it is an honour to be with you today here in Switzerland. On 2 February Hans Hoogervorst, Chairman of the International Accounting Standards Board (IASB), delivered a speech entitled 'Switzerland and IFRS' at the IFRS Foundation Trustees' stakeholder event in Zurich, Switzerland. Where: IFRS Trustees' stakeholder event, Zurich, Switzerland
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