The Accounting Policy & Practice Report ® provides financial accounting policy makers, advisors, and practitioners with the latest news, expert insights, and guidance on emerging, evolving,...
July 25 — About half of the 48,000 domestic companies listed on the 85 major securities exchanges worldwide use international financial reporting standards, the IFRS Foundation says.
The London-based foundation—which oversees the work of the International Accounting Standards Board—estimated in a July 25 analysis that most or all of nearly 25.000 companies on the World Federation of Exchanges and the Federation of European and Asian Stock Exchanges must use IFRS.
The foundation arrived at its conclusions by combining information on IFRS use in its jurisdiction profiles with data about the number of listed companies published on the two associations' web sites through late 2015.
Together, the two security-exchange groups tallied 47,818 domestic listed companies, of which 24,823 operate in jurisdictions that require IFRS use by all or most companies.
International accounting standards are permitted or required for at least some of an additional pool of 3,752 companies.
The analysis is based on assumptions about IFRS use that offer a “reasonable”—though not necessarily foolproof—estimate of the number of companies using international standards worldwide, the foundation said.
“We believe that the margin for error due to those assumptions is small and does not materially affect the IFRS adoption picture,” it said.
Another listed 18,553 companies aren't required or permitted to use IFRS. Instead, they use local standards, of which 80 percent are listed in China, India, Japan and the U.S.
The foundation said 690 companies are listed in jurisdictions without a known accounting framework.
Some jurisdictions allow but don't require IFRS use by foreign listed companies,the analysis said, though their numbers are relatively small.
“We are working to get better data on the choices that foreign listed companies have made,” the foundation said.
The number of listed companies using international accounting standards is set to grow as more jurisdictions adopt IFRS (09 APPR 1004, 11/22/13).
Saudi Arabia, for instance, currently requires financial institutions to use IFRS, but currently doesn't set the same obligations for all listed companies.
The country, however, “is in the process of adopting IFRS Standards as a requirement for all listed companies effective in 2017,” the analysis said.
To contact the reporter on this story: David R. Jones in London at firstname.lastname@example.org
To contact the editor responsible for this story: Steven Marcy at email@example.com
The analysis is available at http://www.ifrs.org/Use-around-the-world/Pages/listed-companies-using-ifrs-standards-globally.aspx.
Copyright © 2016 Tax Management Inc. All Rights Reserved.
All Bloomberg BNA treatises are available on standing order, which ensures you will always receive the most current edition of the book or supplement of the title you have ordered from Bloomberg BNA’s book division. As soon as a new supplement or edition is published (usually annually) for a title you’ve previously purchased and requested to be placed on standing order, we’ll ship it to you to review for 30 days without any obligation. During this period, you can either (a) honor the invoice and receive a 5% discount (in addition to any other discounts you may qualify for) off the then-current price of the update, plus shipping and handling or (b) return the book(s), in which case, your invoice will be cancelled upon receipt of the book(s). Call us for a prepaid UPS label for your return. It’s as simple and easy as that. Most importantly, standing orders mean you will never have to worry about the timeliness of the information you’re relying on. And, you may discontinue standing orders at any time by contacting us at 1.800.960.1220 or by sending an email to firstname.lastname@example.org.
Put me on standing order at a 5% discount off list price of all future updates, in addition to any other discounts I may quality for. (Returnable within 30 days.)
Notify me when updates are available (No standing order will be created).
This Bloomberg BNA report is available on standing order, which ensures you will all receive the latest edition. This report is updated annually and we will send you the latest edition once it has been published. By signing up for standing order you will never have to worry about the timeliness of the information you need. And, you may discontinue standing orders at any time by contacting us at 1.800.372.1033, option 5, or by sending us an email to email@example.com.
Put me on standing order
Notify me when new releases are available (no standing order will be created)