FASB response to SEC on use of IFRSs in the United States
09 Nov 2007
In a Letter to the US Securities and Exchange Commission signed jointly by the Chairmen of the FASB and its oversight Foundation, the two bodies have recommended that the SEC wait on removing the requirement that foreign companies using IFRSs submit a reconciliation of earnings and equity to US GAAP figures until two things have happened:
- Agreement in the United States on a 'blueprint' for allowing US domestic companies to use IFRSs, and
- Commitment by key international parties to undertake the steps necessary to strengthen and sustain the IASB as the independent body responsible for establishing high-quality international standards.
- Requiring all US public companies to use 'an improved version of International Financial Reporting Standards' rather than allowing a choice of US GAAP and IFRSs.
- Removing the reconciliation requirement only for companies applying IFRS as adopted by the IASB, rather than jurisdictional variations.
The views contained in our letter can be summarized in the following four main points:
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Click to view Letter to the US Securities and Exchange Commission (PDF 146k).