Report recommends US recognition of IFRSs
24 Jan 2007
A study commissioned by political leaders in New York City suggests that New York is in danger of losing its status as the world financial centre within ten years without a major shift in regulation and policy.
Recommendations for a National Agenda Critically important near-term priorities
Initiatives to level the playing field
Important longer-term national priorities
Recommendation 5 Recognize IFRS without reconciliation and promote the convergence of accounting and auditing standards. The SEC should consider recognizing International Financial Reporting Standards (IFRS) without requiring foreign companies listing in the US to reconcile to US Generally Accepted Accounting Principles (GAAP). Similarly, the PCAOB should work with other national and international bodies towards a single set of global audit standards. Meanwhile, the US Financial Accounting Standards Board (FASB) and the International Accounting Standards Board (IASB) should continue – and, if possible, accelerate – current efforts towards the convergence of global accounting standards, aiming for a 'best-of-both' approach that balances materiality with the need to inform investors and other users of publicly reported financial information. The accelerated convergence of two high-quality accounting standards will reduce regulatory compliance costs without undermining investor protection or impairing market information. The harmonization of auditing rules, provided that better standards win out, will similarly lower auditing costs for most public companies without reducing the quality of the statements produced. |