The U.S. Securities and Exchange Commission has issued a statement calling for continued convergence between U.S. and international accounting standards, but refraining from pledging to adopt international standards.

The SEC voted Wednesday to issue a statement that lays out its position regarding global accounting standards, which stresses that the commission continues to believe that a single set of high-quality globally accepted accounting standards would benefit U.S investors, and encourages convergence of U.S. Generally Accepted Accounting Principles and International Financial Reporting Standards.

However, the regulator plans to wait until 2011 to decide whether to incorporate IFRS into the U.S. financial reporting system, and if so, when and how. The SEC adds that if it does adopt IFRS, companies won’t be required to report under it until 2015 at the earliest.

The commission also directed its staff to execute a work plan to aid the commission in its evaluation of the impact that the use of IFRS by U.S. companies would have on the U.S. securities market.

It will address issues such as whether IFRS is sufficiently developed and consistently applied; examining investor understanding and education regarding IFRS, and how it differs from U.S. GAAP; understanding whether U.S. laws or regulations, outside of the securities laws, such as tax laws and regulatory reporting, would be affected by a change in accounting standards; understanding the impact on companies; and determining whether accountants and auditors are sufficiently prepared to make the conversion to IFRS.

The SEC staff will provide public progress reports on the work plan, as well as the status of convergence projects, beginning no later than October and frequently thereafter until the work is complete.

“For nearly 30 years, the commission has promoted a single set of high-quality globally accepted accounting standards, which would advance the dual goals of improving financial reporting within the U.S. and reducing country-by-country disparities in financial reporting,” said SEC chairman Mary Schapiro. “But supporting this goal is only the beginning of the discussion, not the end.”

The American Institute of Certified Public Accountants president and CEO, Barry Melancon, said that the AICPA believes that it is critical for the SEC to set a date certain for use of IFRS in the U.S. and he urged the commission, as it completes this work plan in 2011, to ensure investor confidence is maintained and key milestones lead successfully to global standards in 2015.

IE