by Joe Ramey, ATS Manager
The SEC recently released a work plan for how International Financial Reporting Standards (IFRS) might be worked into the U.S. financial reporting system, stressing that the SEC has not yet committed to convergence of U.S. GAAP with IFRS.
The plan drew a picture of how dramatically Financial Accounting Standards Board’s (FASB) role may change in standard setting.
The plan details how an endorsement framework for incorporating IFRS into the reporting system might work and explains how other countries have had success with a blend between complete IFRS convergence and just endorsing the standards.
With this blended approach the International Accounting Standards Board (IASB) can say the U.S. is going to incorporate IFRS into their financial reporting and the U.S. can move forward globally while maintaining control of standards setting.The most significant change for FASB would that of participating in the process for developing IFRS, rather than serving as the principal body responsible for developing new accounting standards.
Although privately-held companies are not governed by the SEC, the majority of the standards that govern private companies come from SEC standards.
Taken from the Ohio Society of CPA’s news website http://www.ohioscpa.com/PublicArticle.aspx?ID=3621