FASB and FAF comment on voluntary disclosure of IFRS information

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09 Dec 2014

The Financial Accounting Foundation (FAF) and the Financial Accounting Standards Board (FASB) have issued a statement welcoming a possible voluntary disclosure of IFRS-based financial reporting information in addition to US GAAP-based information.

At the annual American Institute of Certified Public Accountants (AICPA) Conference on Current SEC and PCAOB Developments, Jim Schnurr, Chief Accountant of the US Securities and Exchange Commission (SEC), mentioned yesterday voluntary disclosure of IFRS-based financial reporting information as one example of how IFRS could be incorporated into the US reporting system. He also indicated that in this context reconsidering the SEC's current thinking that IFRS-based measures are "non-GAAP" financial measures might be required. The statement published by FAF and FASB comments:

We also believe 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 International Financial Reporting Standards (IFRS). We 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 Generally Accepted Accounting Principles (GAAP) and IFRS.

The full statement is available on the FAF website.

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