The SEC Staff recently published its final Staff Report regarding the potential impact of incorporation of IFRS into the US financial reporting system. This Dataline looks at the six key areas covered in the Staff Report and offers our observations.
On July 13, 2012, the SEC Staff published its final Staff Report (the "Staff Report") on the potential impact of incorporating IFRS into the US financial reporting system. The Staff Report summarized the Staff's findings in six key areas introduced in its February 2010 Work Plan, intended to aid the SEC in considering whether, when, and how to incorporate IFRS.
The Staff Report did not include a recommendation on whether (or how) IFRS should be incorporated into the US financial reporting system. It also did not indicate when such a decision might be made, provide a timeline of next steps, or address whether US public companies should have the option to adopt IFRS on a voluntary basis. The Staff Report noted that a vast majority of participants in the US capital markets do not support outright adoption of IFRS by US issuers. Other forms of incorporation, such as an endorsement mechanism, are viewed more favorably.
This Dataline looks at the six key areas covered in the Staff Report.