SEC Nearing Decision on IFRS Adoption
As questions rise over the Securities and Exchange Commission’s (“SEC”) position on International Accounting Standards Board standards, the agency is close to addressing its use of International Financial Reporting Standards (IFRS) within the U.S. financial reporting system. With the SEC’s Mary Jo White repeatedly calling to make IFRS adoption a priority, the agency recently hired James Schnurr as its chief accountant.
Scheduled to start his post October 6th, Schnurr could soon dedicate some policymaking action to IFRS. A retired partner from a Big Four firm, he previously said offering an IFRS option to U.S. companies provides various benefits. For instance, Schnurr suggested that U.S. investors might have an easier time comparing their performance to domestic competitors who adopt IFRS. Furthermore, SEC deputy chief accountant Daniel Murdock said last week that IFRS has a solid presence in U.S. markets, especially with approximately 500 foreign companies that submit regulatory filings with IFRS-prepared financial statements.
Agency officials are also considering offering U.S. companies the option to file IFRS statements instead of U.S. GAAP. In regards to this decision, the SEC’s Keith Higgins put down the idea that the IFRS option would confuse investors.
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