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FASB and FAF comment on voluntary disclosure of IFRS information

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Dec 09, 2014

The FASB and its parent body, the Financial Accounting Foundation (FAF), have issued a statement indicating that the organizations believe that “voluntarily providing IFRS information on a supplemental basis, subject to audit, SEC review, and other regulatory scrutiny, could be an important tool in fostering further convergence of [GAAP] and IFRS.”

At this year’s AICPA Conference on Current SEC and PCAOB Developments, SEC Chief Accountant James Schnurr spoke about a plan to consider whether U.S. companies should be permitted to voluntarily provide IFRS-prepared financial statements as a supplement to their U.S. GAAP financial statements. He also indicated that in this context, it might be necessary to reconsider the SEC's current thinking that IFRS-based measures are "non-GAAP" financial measures.

In their statement, the FAF and FASB noted that “it makes sense to explore whether there are ways to remove bar­ri­ers that might exist for com­pa­nies that vol­un­tar­ily choose to offer in­vestors a second set of fi­nan­cial state­ments pre­pared in ac­cor­dance with [IFRS].”

The full statement is available on the FAF's Web site.

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