The US Securities and Exchange Commission (SEC) has issued a white paper explaining the ‘condorsement’ model that would help the US companies ease into IFRS adoption.
Condorsement would see IFRS infused into US GAAP over a set period by endorsing international standards one at a time while converging IFRS with US GAAP in parallel.
At the end of the period, a US issuer compliant with US GAAP should also be compliant with IFRS.
“Incorporation of IFRS through the framework would have the objective of achieving the goal of having a single set of high-quality, globally accepted accounting standards, while doing so in a practical manner that could minimise both the cost and effort needed to incorporate IFRS into the financial reporting system for US issuers,” the white paper stated.
The SEC is seeking feedback on the ‘condorsement’ framework and other IFRS transition models until the 31 July 2011.