KPMG Forms IFRS Institute
April 22, 2008
FEI Summary

On April 22, 2008 audit firm KPMG announced establishment of the KPMG IFRS Institute, "to raise awareness and address the information needs of companies, investors, academics and others who may be affected by a transition by U.S. companies to International Financial Reporting Standards (IFRS)."

KPMG Chairman and CEO Timothy P. Flynn said, "As companies expand their reach and economies globalize, the ability to compare financial statements across borders has become imperative. The question about whether the world is going to global standards is no longer ‘if,’ but ‘when.’"

KPMG's announcement also noted: "The Securities and Exchange Commission (SEC) is expected to issue a rule proposal in the next few weeks outlining the manner, timing and eligibility for some U.S. public companies to transition from U.S. generally accepted accounting principles (GAAP) to IFRS."

Flynn added that KPMG expects the IFRS Institute to attract a broad cross-section of members from companies, audit committees, shareholders, accounting professionals, academia, regulators, rating agencies and others who will need to be familiar with the preparation of financial statements using IFRS and potential implications of conversion.

Janice Patrisso was named Director of KPMG's IFRS Institute. Patrisso will also lead KPMG’s national project management office to coordinate the firm’s activities and resources related to IFRS.

“The decision to establish the IFRS Institute," said Patrisso, "comes from our recognition that U.S. companies will need to assess the implications of conversion from two perspectives. First, they must ensure they are prepared to respond to any regulatory mandates regarding IFRS. Second, depending on the transition approach ultimately approved by the SEC, they must consider whether to adopt IFRS to help ensure comparability and competitiveness with peer companies globally who are already using IFRS."

KPMG's IFRS Institute follows KPMG's earlier formation of other specialized institutes, including the Audit Committee Institute (ACI), the [Sarbanes-Oxley] 404 Institute, and the Tax Governance Institute. 

An inaugural webcast will be hosted by the KPMG IFRS Institute on May 1. Further details can be found at www.kpmgifrsinstitute.com.

KPMG is also participating in FEI's upcoming IFRS conference on June 5, 2008 in New York City: "The World Is Moving To IFRS - Are You?" KPMG Partner Paul Munter will appear on the panel, "First Time Adoption of IFRS." Further information about the FEI conference is at www.financialexecutives.org/ifrs.

KPMG's Munter is also part of an article on accounting education that will be published in the June issue of FEI's magazine, Financial Executive, "From GAAP to IFRS: Climbing the Learning Curve." 

Prepared April 30, 2008 by Edith Orenstein, Director, Technical Policy Analysis, Financial Executives International (FEI). This summary does not reflect FEI opinion unless specifically noted above.