2010-02-25 SEC Reaffirms Support for Single Set of Global Accounting Standards - IFRS as Best Option

View this page in: Français

On February 24, 2010, the Securities and Exchange Commission reaffirmed its continued support for a single, globally-accepted set of high-quality accounting standards and stated that International Financial Reporting Standards is best positioned to meet this goal.

SEC Reaffirms Support for Single Set of Global Accounting Standards

On February 24, 2010, the Securities and Exchange Commission (SEC) held an open meeting to advance the dialogue on the role of International Financial Reporting Standards (IFRS) in the U.S. financial reporting system. 

The SEC also unanimously agreed to publish a statement of continued support for a single set of high-quality global accounting standards. The SEC acknowledged that IFRS is best positioned to be the global standard.
SEC Approves Statement on Global Accounting Standards

The statement of support will describe the issues that need to be further analyzed, and it will lay out the events that must occur between now and 2011 when the SEC expects to make a determination on whether or not to further incorporate IFRS into the U.S. public markets. The SEC reiterated its commitment to considering feedback from over 200 comment letters received on the proposed roadmap, and also to basing any move to IFRS on the best interests of investors and the U.S. capital markets.

The SEC specifically emphasized that ongoing FASB/IASB convergence projects must be successfully completed before any conversion to IFRS.

In addition, the SEC staff was directed to develop a work plan to aid the Commission as it evaluates the impact that the use of IFRS by U.S. companies would have on the securities markets. The work plan will focus on the following areas: 

  • Sufficient development of IFRS for use in the U.S. domestic reporting system
  • Independence of standard setters
  • Investor understanding of IFRS
  • Impact on the U.S. regulatory environment
  • Impact on large and small issuers
  • Human capital readiness

The work plan effort will also include an evaluation of the scope and timeline for further incorporating IFRS into the U.S. reporting system. The SEC intends to allow adequate time for orderly and high quality changeovers resulting in a conversion period that could begin no earlier than 2015. The SEC staff expects to provide public progress reports on the work plan beginning in October 2010.
Additional Materials

A copy of the SEC press release:

http://www.sec.gov/news/press/2010/2010-27.htm
 

SEC Release NO. 33-9109; Commission Statement in Support of Convergence and Global Accounting Standards:

http://sec.gov/rules/other/2010/33-9109.pdf

You are in: Services > Audit and Assurance