Wednesday, July 25, 2007
The SEC today voted unanimously to publish a Concept Release for public comment on allowing U.S. issuers, including investment companies, to prepare their financial statements using International Financial Reporting Standards (IFRS) as published by the International Accounting Standards Board.
Under the SEC's current rules, U.S. issuers are required to prepare financial statements in accordance with accounting principles that are generally accepted in the United States (U.S. GAAP). The Concept Release is an information-seeking document that describes the policy issues and, in the form of questions, seeks public input regarding the possibility of allowing U.S. issuers to report under IFRS.
"Having a set of globally accepted accounting standards is critical to the rapidly accelerating global integration of the world's capital markets," said SEC Chairman Christopher Cox. "Today nearly 100 countries require or allow the use of International Financial Reporting Standards. Through this Concept Release, we will be soliciting public comment on the role of International Financial Accounting Standards in the U.S. capital markets and on whether U.S. companies, like many of their competitors around the world, should be permitted to use International Financial Accounting Standards."