The Chartered Financial Analyst Institute (CFA
Institute) supports an endorsement-based approach of incorporating
IFRS into the US financial reporting system.
The institute’s view comes in response to a
recent US Securities and Exchange Commission (SEC) work plan that
explores the endorsement model, as well as other alternatives such
as the convergence and ‘condorsement’ approaches.
Access deeper industry intelligence
Experience unmatched clarity with a single platform that combines unique data, AI, and human expertise.
“An endorsement-based incorporation approach
would permit the US to retain its sovereign right to set accounting
standards in the US, which may work to protect investor interests,”
a comment letter from the institute said.
The CFA Institute also supported a
standard-by-standard review process and expressed its preference
for a single adoption date for all the standards once they have
been reviewed. They acknowledged that this process will “create
initial discontinuity” but will be “preferable to a period of
continuous discontinuity”.
The institute also emphasised its view that
the SEC should wait until it completes its work plan and “not be
beholden to a 2011 decision date”.
The CFA Institute is a global, not-for-profit
professional association of over 107,200 investment professionals
in 137 countries, many of whom hold the CFA designation.
US Tariffs are shifting - will you react or anticipate?
Don’t let policy changes catch you off guard. Stay proactive with real-time data and expert analysis.
By GlobalData
