State Board Report

October 2008

The first class of graduating seniors likely to have a substantial amount of International Financial Reporting Standards (IFRS) education will be the class of 2011, according to 30 percent of the accounting faculty surveyed by the American Accounting Association and KPMG LLP. During July and August 2008, the survey team contacted 535 professors. They were asked if they could incorporate IFRS into curricula in a significant way this year, and only 22 percent said they could, while 62 percent said they had not taken any action steps to do so.

Key challenges for bringing IFRS into the curriculum according to the surveyed educators are:

Developing curriculum materials (cited by 79 percent of the respondents) and making room for IFRS in the curriculum (72 percent). To teach IFRS, 89 percent of the respondents said they needed textbooks and 76 percent said they needed case studies. Forty?two percent of the educators believed textbooks would not be available until the 2010?2011 academic year. Only 23 percent felt that the university administrators responsible for allocating resources understand the significant change needed to incorporate IFRS into the curriculum.

Adopting IFRS only after there is an acceptable level of convergence with US standards is achieved was supported by 42 percent of the educators, but 37 percent thought the SEC should require adoption by establishing a specific date. A phased?in IFRS implementation process, based on the size of the company, was favored by 27 percent of the respondents.

Manny Fernandez, KPMG National Managing Partner – University Relations and Recruiting, commented: “It is imperative that professors take the time to educate administrators on the overall impact of IFRS in business and present a needs assessment for their department and curricula. There is no doubt that the early movers in incorporating IFRS into the curricula are those that have adequately informed university leadership, and it will be those schools that will be more successful in building their brands in recruiting students.”

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