Lawmakers Want SEC to Take Cautious Approach to IFRS
Concerned that U.S. adoption of IFRS would do more harm than good for investors, members of the Congressional Caucus on CPAs and Accountants recently expressed their sentiments to U.S. Securities and Exchange Commission’s (“SEC”) Mary Jo White. In a letter to the SEC Chair, the lawmakers asked White to be cautious in the agency’s convergence projects with the Financial Accounting Standards Board (“FASB”) and International Accounting Standards Board (“IASB”), as well as incorporate public comment before making a decision. In response to the lawmakers’ letter, a spokeswoman for the SEC declined to comment.
Since becoming SEC Chair last year, White has openly expressed consideration of the international standards as being a high priority for the agency. Additionally, White signed off in January an agreement by the Financial Accounting Foundation to send the IFRS Foundation $3 million for promoting the FASB and IASB’s efforts to converge their lease accounting standards, and other joint projects associated with accounting for financial instruments and insurance contracts. Despite the agreement and recent comments by White suggesting the SEC is close to making a decision, no timetable has been announced for when a rule would be considered.
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Topics: Congressional Caucus on CPAs and Accountants, Convergence, Financial Accounting Foundation "FAF", Financial Accounting Standards Board "FASB", International Accounting Standards Board "IASB", International Financial Reporting Standards "IFRS", lease accounting, Mary Jo White, U.S. Securities and Exchange Commission "SEC"