The Securities and Exchange Commission (SEC)
is investigating the adoption of IFRS in the US, and will publish
three papers to outline its findings.
SEC staff are currently working on papers for
public study and comment to examine a possible framework for
incorporating IFRS into US financial reporting, said Shelly Luisi,
senior association chief accountant at the SEC
The SEC is also developing a comparison of US
and international accounting rules, and a review of financial
statements prepared under IFRS.
Staff members are also working on an updated,
detailed study of where there are still differences between US GAAP
and IFRS, to “determine whether IFRS standards are of adequate
quality to meet US financial reporting needs”, Luisi said
The final part of the study includes a
detailed analysis of IFRS filings to determine the quality of
accounting produced under IFRS, according to Luisi.
This part of the study focuses on the
comparability of companies that report under IFRS, and seeks to
determine what kind of choices companies are making when IFRS gives
them alternatives.
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By GlobalDataThe first paper will include a possible
framework or time line for eventually adopting IFRS in the US,
dividing adoption into three major phases that would occur over
five to seven years, Luisi said.
The SEC is expected to continue to monitor the
convergence effort to eliminate major differences in accounting
standards, then endorse or adopt international standards
individually as the SEC deems them ready for use in the country,
Luisi said.
