SEC “Hints” at Reconsidering IFRS Adoption

Is Mary-Jo White, SEC Chair, ready to “take another look at” the issues related to U.S. public companies adopting IFRS for reporting financial information to the SEC?

Yes, says Alex Malley, Chief Executive of CPA Australia. In an article in “Accounting Today”, Mr. Malley cited comments from a speech Chair White gave at the Financial Accounting Foundation Trustees dinner in May.

In that speech, Chair White said, “The Commission last spoke on these questions in February 2010 when it said that: “…a single set of high-quality globally accepted accounting standards will benefit U.S. investors and that this goal is consistent with our mission…”  That remains true today and I have made it a priority for the Commission to position itself to make a further statement on this very important subject, now that we have six years of experience working on the priority convergence projects with the IASB and over six years of experience with foreign private issuers filing IFRS-prepared financial statements without a U.S. GAAP reconciliation.”

Of course, Chair White did not offer specifics about the direction the SEC might take with respect to adoption of IFRS for U.S. public company reporting, particularly for reporting by U.S. domestic companies when reporting to the SEC (non-US companies filing with the SEC are already permitted to use IFRS-based standards in their SEC filings without including reconciliations of income or equity to U.S. GAAP).

But, at least the SEC is talking about the issue.

 

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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.
This entry was posted in Accountant, Financial Accounting, IFRS, IFRS Adoption in U.S. and tagged , , , , , . Bookmark the permalink.

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