Prada addressed a range of issues, including trends in worldwide accounting and auditing standards, the processes for setting standards, the recent changes to the IASCF Constitution, structural changes within IFAC
, "adoption, equivalence, harmonisation, and convergence in relation to IFRSs", the importance of a set of IFRSs for small and medium-sized entities, and the need for a 'standard setting pause' ("some stability over the next 3 years may well be needed for the transition to be really completed and digested by the stakeholders"). Here is an excerpt:
We should thus be satisfied to see that today IFRS are accepted in about 75 jurisdictions, the word 'accepted' meaning either a required or permitted use. But this absolute number does not mean much in terms of financial markets. It is more meaningful to observe that:
These data illustrate both the good progress already achieved worldwide by the IFRS, and the strategic importance of achieving a satisfactory arrangement for acceptance of IFRS in the USA and for convergence
between Japan GAAP and IFRS.
- Out of a worldwide market capitalization totalling over 36 trillions US Dollars at the end of 2005, 11 trillions $ correspond to markets where IFRS are either required or permitted and 17 trillions US $ to markets where US GAAP is the rule; out of the balance, 4 trillions US $ correspond to Japan GAAP;
- In terms of the largest companies included in the Fortune 500 list, 176 prepare their accounts under US GAAP and 200 under IFRS, 81 under Japanese GAAP.