71% Of Senior Financial Executives Say That FASB Should Set U.S. Accounting Standards, Not IASB or U.S. Congress

http://www.businesswire.com/news/home/20091029005085/en

More Than Half of Public Companies Still Have No Plans to Use XBRL Even after
SEC Mandate
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

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