The U.S. Securities and Exchange Commission has voted to publish for public comment a proposed roadmap that could lead to the use of International Financial Reporting Standards by U.S. issuers beginning in 2014.
The SEC said it would make a decision in 2011 on whether adoption of IFRS is in the public interest and would benefit investors. The proposed multi-year plan sets out several milestones that, if achieved, could lead to the use of IFRS by U.S. issuers in their filings with the commission.
“An international language of disclosure and transparency is a goal worth pursuing on behalf of investors who seek comparable financial information to make well-informed investment decisions,” said Christopher Cox, SEC chairman, in a release. “The increasing worldwide acceptance of financial reporting using IFRS, and U.S. investors’ increasing ownership of securities issued by foreign companies that report financial information using IFRS, have led the commission to propose this cautious and careful plan. Clearly setting out the SEC’s direction well in advance, as well as the conditions that must be met, will help fulfill our mission of protecting investors and facilitating capital formation.”
Timothy Flynn, chairman of KPMG International, said, “Today’s [Wednesday’s] discussion by the SEC is a very welcome step. In a world where markets are becoming borderless, a global accounting standard like IFRS will provide a common language for investors.”
“We know that the transition to IFRS in the United States will be challenging. It will involve training and education for every stakeholder in the capital markets. KPMG already is using the considerable global IFRS experience of our professionals in the U.S. and KPMG’s member firms, to assist U.S. clients, academics and investors as they begin the journey to global accounting standards,” he added.
U.S. set to adopt IFRS rules
SEC sets out multiyear plan that could lead to the use of International Financial Reporting Standards by U.S. issuers
- By: James Langton
- August 28, 2008 August 28, 2008
- 07:15