29 May 2014
Hans Hoogervorst, Chairman of the International Accounting Standards Board today delivered a speech entitled “Charting progress towards global accounting standards” at the IFRS Conference, Singapore.
In his speech, Mr Hoogervorst outlines the current use of IFRS around the world, notably across Asia. He draws on data from jurisdictional profiles published by the IASB that show how IFRS is now required for use by more than 100 jurisdictions worldwide. Mr Hoogervorst points out that the use of IFRS is no longer concentrated in Europe. The spread of IFRS in the Americas, Asia and Africa is such that the combined GDP of non-European jurisdictions using IFRS is over $23 trillion, more than the combined EU-GDP of $17 trillion.
Mr Hoogervorst also discusses elements of the IASB’s current work programme. In particular, he talks about the significance of the upcoming standard on leasing, discussing a recently prepared effect analysis of the Standard on 12.000 listed companies in Europe, Asia and North America. Mr Hoogervorst notes that only a minority of companies will be significantly affected by the leases Standard, and that roughly 50% of companies will not be affected at all since they currently do not have material operating leases.
Mr Hoogervorst also points out that the use of leases is heavily concentrated in less than 10% of companies. He argues that in the economic sectors where leasing is prevalent, such as transportation, the leases Standard will greatly enhance comparability and improve insight into the true leverage of the companies affected.
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