CHICAGO - (Business Wire) In a national survey of U.S. CFOs and senior comptrollers conducted by Grant Thornton LLP, the U.S. member firm of Grant Thornton International Ltd, the majority (71%) believe that the Financial Accounting Standards Board (FASB) should set U.S. accounting standards, not the SEC, the International Accounting Standards Board (IASB) or the U.S. Congress. EXtensible Business Reporting Language (XBRL) usage has picked up some among public companies, increasing to 17 percent in September 2009 from 12 percent in March 2009; however, this increase is not as significant as one might expect given the SEC mandate that public companies use XBRL as early as June 2009 and no later than 2011. Even more surprising is that more than half (52%) of public companies still report that they have no plans to use XBRL.
Fifty-nine percent of the survey respondents report that their companies would continue to use leases more or less in the same manner as they currently do, even though the FASB has tentatively decided that all lease obligations should be recognized as liabilities on the statement of financial position with a corresponding “right of use” asset. CFOs also feel that companies should report their own debt on their financial statements at amortized historical cost (43%), rather than at fair value (38%) or at the discounted amount of the expected future payments (18%).
Ideally, who should set U.S. accounting standards?
| | | All | | Public | | Private |
| A national independent board supervised by a national regulator (e.g., the Financial Accounting Standards Board) | | 71% | | 70% | | 71% |
| An international independent board supervised by international entities such as the International Organization of Securities Regulators, the World Bank and the International Monetary Fund (e.g., the International Accounting Standards Board) | | 24% | | 23% | | 25% |
| The global accounting profession (e.g., the International Federation of Accountants) | | 20% | | 16% | | 21% |
| A national regulator (e.g., the SEC) | | 16% | | 18% | | 16% |
| A body designated by an international entity such as the United Nations Council on Trade and Development or the World Trade Organization | | 3% | | 2% | | 3% |
| National legislatures (e.g., the U.S. Congress) | | 3% | | 4% | | 2% |
| | | | | | |
Does your company currently report financial results using eXtensible Business Reporting Language (XBRL)?
| | | All | | Public | | Private |
| Yes | | 6% | | 17% | | 3% |
| No | | 94% | | 83% | | 97% |
| | | | | | |
If no, when do you plan to report using XBRL?
| | | All | | Public | | Private |
| Before 2010 | | 1% | | 6% | | 1% |
| Before 2011 | | 8% | | 25% | | 5% |
| After 2011 | | 6% | | 18% | | 3% |
| No plans at this time | | 84% | | 52% | | 92% |
| | | | | | |
The FASB has tentatively decided that all lease obligations should be recognized as liabilities on the statement of financial position with a corresponding “right of use” asset. Would a requirement to recognize lease obligations on the statement of financial position cause you to change the way in which you finance operations?
| | | All | | Public | | Private |
| Yes, we would continue to use leases or lease financing, but possibly with significant changes in the provisions of the agreements. | | 12% | | 13% | | 12% |
| Yes, we would be less inclined to make use of lease financing. | | 14% | | 16% | | 13% |
| No, we would continue to use leases more or less in the same manner as we currently do. | | 59% | | 57% | | 61% |
| Don’t know | | 15% | | 14% | | 14% |
| | | | | | |
How should firms report their own debt on their financial statements?
| | | All | | Public | | Private |
| At amortized historical cost | | 43% | | 47% | | 42% |
| At fair value | | 38% | | 33% | | 38% |
| At the discounted amount of the expected future payments | | 18% | | 19% | | 18% |
| Other | | 2% | | 2% | | 2% |
| | | | | | |
About the Survey
Grant Thornton LLP conducted the biannual national survey from Sept. 21 through Oct. 2, 2009, with 846 U.S. CFOs and senior comptrollers participating. For more information about the survey, please go to www.GrantThornton.com/cfosurvey.
About Grant Thornton LLP
The people in the independent firms of Grant Thornton International Ltd provide personalized attention and the highest quality service to public and private clients in more than 100 countries. Grant Thornton LLP is the U.S. member firm of Grant Thornton International Ltd, one of the six global audit, tax and advisory organizations. Grant Thornton International Ltd and its member firms are not a worldwide partnership, as each member firm is a separate and distinct legal entity.
In the U.S., visit Grant Thornton LLP at www.GrantThornton.com.
Grant Thornton LLP
Kristi Grgeta, 312-602-8720
Kristi.Grgeta@gt.com
