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IASB chairman continues to believe that investors need globally comparable financial information

  • Speech — dark green Image

Jun 11, 2014

IASB Chairman Hans Hoogervorst has issued a statement about comments made by former SEC Chairman Christopher Cox at last week’s annual SEC and Financial Reporting Institute Conference in Pasadena, California, at which the former chairman declared that full-scale adoption of IFRSs in the United States is no longer possible. Mr. Cox had noted that too much time has elapsed without meaningful progress on U.S. adoption and that American enthusiasm for IFRSs has receded.

In response to Mr. Cox’s comments, Mr. Hoogervorst stated the following:


Former Chairman Cox has shifted his focus from a single set of high quality global standards to maintaining a national standard setter that is 'supple' when responding to domestic priorities and concerns. We continue to believe that investors are best served by high quality globally comparable information, and that includes U.S. investors. As former Chairman Cox noted, U.S. investors have trillions of dollars invested in entities reporting under IFRS. We never forget the importance of these stakeholders and are expanding our efforts to reach out and consult with them on all of our projects.

I believe that we are on the right track with leases, and have disagreed before with former Chairman Cox about this. Both the IASB and the FASB have reaffirmed the heart of our proposals – that lessees need to put this missing obligation on their balance sheet. This is what the SEC staff itself suggested in a 2005 report under Sarbanes-Oxley. At the same time, they cautioned that these reforms would be highly controversial and meet strong resistance. I’m sorry to say that they were right.

We are grateful to the IASB for allowing us to make Mr. Hoogervorst's full statement available.

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