The US Securities and Exchange Commission’s
(SEC) plans to decide in 2011 whether the US will adopt IFRS will
not be affected by delayed convergence between IFRS and US GAAP,
SEC chair Mary Schapiro said.
As the SEC decides whether to adopt IFRS, it
is considering both IFRS as it exists today and IFRS as it will
appear following the completion of a number of convergence
These convergence projects were due to be
complete by June 2011. But the International Accounting Standards
Board (IASB) and the US Financial Accounting Standards Board (FASB)
are modifying their work plan to allow more time for stakeholders
to comment on draft standards.
The IASB and FASB’s original work plan would
have seen about 10 major proposals issued in the next two
The revised strategy will see a maximum of
four significant or complex exposure drafts issued in any one
The boards said they remain committed to
completing the bulk of convergence projects, including the most
urgent ones, by mid-2011.
Speaking after the IASB and FASB’s
announcement, Schapiro said additional time for stakeholders to
provide quality feedback is “time well invested”.
“I foresee no reason that the adjustment to
the targeted timeline for certain joint projects should impact the
[SEC] staff’s analyses under the [IFRS adoption] work plan issued
in February 2010, particularly when that adjustment is designed to
enhance the quality of the standards,” Schapiro said.
“Indeed, focused efforts on those standards
the boards consider highest priority for the improvement of US GAAP
and IFRS will facilitate the staff’s analyses.
“Accordingly, I am confident that we continue
to be on schedule for a Commission determination in 2011 about
whether to incorporate IFRS into the financial reporting system for