SEC calls for views on aspects of possible IFRS transition

  • SEC (old) Image

16 Aug 2010

The Securities and Exchange Commission (SEC) has released two Requests for Comment on behalf of its staff on a number of topics related to its ongoing consideration of incorporating International Financial Reporting Standards (IFRS) into the financial reporting system for United States issuers.

On 24 February 2010, the SEC issued a Statement in Support of Convergence and Global Accounting Standards, reiterating its belief "that a single set of high-quality globally accepted accounting standards will benefit U.S. investors and that this goal is consistent with our mission of protecting investors, maintaining fair, orderly, and efficient markets, and facilitating capital formation". In that Statement, the SEC directed its staff to develop and execute a work plan considering specific areas and factors about the potential transition to a system incorporating IFRS.

Consistent with this directive, the two Requests for Comment issued seek views on the following topics:

Release 1 - Investor and logistics perspectives (No. 33-9133)
  • Investors' current knowledge of IFRS and preparedness for incorporation of IFRS
  • Investors' education processes on changes in accounting standards and timeliness of such education
  • Extent of, logistics for, and estimated time necessary to undertake any necessary changes
Release 2 - Impacts on other arrangements and requirements (No. 33-9134)
  • Contractual arrangements (e.g. financial covenants, lease contracts, employee compensation, earn-out provisions)
  • Corporate governance: stock exchange listing requirements
  • Statutory distribution restrictions and other legal standards tied to financial reporting standards

Comments close 60 days after publication of the Requests for Comment in the United States Federal Register. Click for:

 

Related Topics

Correction list for hyphenation

These words serve as exceptions. Once entered, they are only hyphenated at the specified hyphenation points. Each word should be on a separate line.