IFRS, Convergence and Need for “Flexibility”?

As pointed out in an excellent analysis by Huw Jones of Reuters, financial accounting and reporting regulators in some jurisdictions, re: U.S. and India, among others, are hesitant to adopt IFRS as their primary standards because they would like to retain control over the individual standards that are issued (http://uk.reuters.com/article/2012/04/26/uk-global-accounting-idUKBRE83P0L920120426?feedType=RSS&feedName=GCA-GoogleNewsUK).

Is this the issue causing the SEC to “over”-deliberate on IFRS adoption by U.S. public companies issuing securities in U.S. securities markets? 

Well, while U.S. companies await the SEC’s guidance, nonU.S. companies issuing financial statements that are in compliance with IFRS continue to file those statements with the SEC without a reconciliation to U.S. GAAP.

Yeah, that policy seems sensible (sic).

Just sayin’.

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About docjonz

I am an Associate Professor of accounting at Hofstra University in Hempstead, NY. Additionally, I have more than 30 years of professional accounting experience in various capacities including auditing, accounting standard setting and corporate accounting policy.
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