Did you see the post on FAO SLAs yesterday? http://faoblog.com/transition-5/

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US GAAP Vs. IFRS

US has been following the US GAAP till now. A question arises whether the Securities and Exchange Commission will substitute IFRS for GAAP.

For many years, the SEC has been expressing its support for a core set of accounting standards that could serve as a framework for financial reporting in cross-border offerings. On February 24, 2010, the SEC issued release Nos. 33-9109 and 34-61578, Commission Statement in Support of Convergence and Global Accounting Standards. In the release, the SEC stated its continued belief that a single set of high-quality globally accepted accounting standards would benefit U.S. investors and its continued encouragement for the convergence of U.S. GAAP and IFRS. The release also called for the development of a work plan (the “Work Plan”) to enhance both the understanding of the SEC’s purpose and public transparency in this area. Execution of the Work Plan, combined with the completion of previously agreed upon convergence projects between the FASB and IASB according to their current schedule, will permit the SEC to make a determination, in 2011, regarding incorporating IFRS into the financial reporting system for U.S. issuers.

The SEC made clear that it envisions 2015 as the earliest possible date for the required use of IFRS by U.S. public companies. However, in the statement approved February 24, the SEC said while it is not pursuing an early adoption option, it could reconsider this position later. To learn more about the SEC’s Statement in Support of Convergence and Global Accounting Standards and its Work Plan, visit the following link:

www.sec.gov/rules/other/2010/33-9109.pdf