US public companies should be given the option to adopt IFRS, the American Institute of Certified Public Accountants (AICPA) has recommended to the Securities and Exchange Commission (SEC).
AICPA chairman Paul Stahlin and president and chief executive Barry Melancon said US issuers should be given the option to adopt IFRS regardless of whether or not the SEC decides to “incorporate IFRS into the US financial reporting system through an endorsement or convergence approach.”
In a four page letter to the SEC, the national institute said it thinks one common financial reporting language would benefit investors, as well as issuers and capital markets, because it would facilitate the comparison of reporting entities domiciled in different countries.
“We believe the standards issued by International Accounting Standards Board are best positioned to become those global standards,” Stahlin and Melancon said.
The SEC is due to make its decision about the convergence of IFRS with US GAAP and about a phased timeline for US adoption of IFRS later this year.