While the Securities and Exchange Commission's proposed IFRS rule changes likely leaves some public real estate companies out of early adopter consideration, U.S. real estate companies may still want to commence planning for a future conversion and consider the implications of reporting under IFRS. A tiered approach to conversion will likely help companies effectively meet the SEC's proposed mandatory transition date beginning in 2014 and may provide the global, capital-intensive real estate industry with immediate competitive benefits, according to Deloitte's recently released IFRS in Real Estate: More Than Just Accounting & Reporting.
"Real estate is increasingly global, whether it's capital-raising activities, foreign property portfolios or international operations. Moving toward IFRS today sets in motion a process that will eventually open the door to a truly global real estate marketplace," said Robert O'Brien, Deloitte's U.S. head of Real Estate IFRS. "Although the SEC has established a target date of 2014 for the commencement of mandatory IFRS reporting, proactive companies can plan for implementation today, including understanding IFRS' future impact on debt covenants, performance measures and systems."
