Still in Flux: Future of IFRS in U.S. Remains Unclear after SEC Report
2012; American Institute of Certified Public Accountants; Volume: 214; Issue: 3 Linguagem: Inglês
ISSN
0021-8448
Autores Tópico(s)Risk Management in Financial Firms
Resumo[ILLUSTRATION OMITTED] future of international accounting standards for public companies remains uncertain after the release in July of a long-anticipated SEC analysis of IFRS. In a 127-page report released on the final day of Chief Accountant James Kroeker's tenure, the SEC staff said the global financial reporting community considers the standards produced by the International Accounting Standards Board (IASB) to be of high quality despite areas that need further development. But the report questioned the funding of the IASB and the timeliness of responses to widespread accounting issues by the IFRS Interpretations Committee. It said adoption would be costly for public companies. U.S. GAAP also contains areas for which guidance is in need of continued development, the report said, but the perception among constituents is that the 'gap' in IFRS is greater. Nonetheless, many stakeholders view global comparability and consistency in accounting standards to be a higher goal worthy of pursuing. SEC report said the IASB has made significant progress in developing a comprehensive set of standards. Some believe that the SEC's continued indecision on IFRS leaves the United States isolated and limits companies' access to international capital. Michel Prada, chairman of the IFRS Foundation trustees, released a statement expressing disappointment that no clear action plan on IFRS is described in the report. Prada said that while the IASB continues to make improvements, other nations with large economies have committed to IFRS despite the issues that concern the SEC. are at a pivotal moment for our organization, IASB Chairman Hans Hoogervorst said in a statement. The IASB has started working on a new agenda. era of convergence is coming to an end. We are revamping our institutional infrastructure to provide for a more inclusive approach to international standard setting. This is the right timing to come on board and participate in shaping the future of global accounting. It appears that the SEC has no timeline for further consideration of IFRS. Although SEC spokesman John Nester said the logical next step is a recommendation on IFRS by the staff, there is no timetable for that. SEC invited comments on its report, which can be sent by email to rulecomments@sec.gov or made through the SEC's internet comment form at tinyurl.com/ 7owtnmo. SEC's report is available at tinyurl.com/6pjt6tf. No deadline was announced for the comments; the ultimate decision on IFRS rests with the five SEC commissioners. Experts and observers said that with the upcoming presidential election in November, it is clear after the report's release that the SEC will not decide on IFRS until at least the beginning of next and perhaps later. I can't see a decision in less than a year, Xerox Vice President and Chief Accounting Officer Gary Kabureck said in July. AICPA has long been a proponent of global standards and believes IFRS is best positioned to become the single set of standards that would create worldwide comparability of financial reports. AICPA urged the commissioners to consider the staff report with expediency and allow public companies the option to adopt IFRS for financial reporting. AICPA President and CEO Barry Melancon, CPA, CGMA, said in a statement that an adoption option would facilitate the comparison of companies with their non-U.S, competitors. The world's capital markets know no borders, he said. The participants in these markets need high-quality, transparent, and comparable financial information to enable them to make sound investment decisions. FUNDING IS SIGNIFICANT HURDLE biggest obstacle to IFRS adoption for public companies may be the funding of the IASB. Voluntary funding was critical for the IASB as it got off the ground in the early 2000s; the SEC report said that until 2008, the IFRS Foundation financed the IASB largely through voluntary contributions from a wide variety of participants across the world's capital markets. …
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