Announcements by the Securities and Exchange Commission ''represent critical steps toward a future regulatory framework in which IFRS may be used on a stand-alone basis by foreign private issuers and possibly also by U.S. issuers.''
By summer, the Securities and Exchange Commission will issue a proposal allowing foreign private issuers to file financial reports using either international financial reporting standards (IFRS) or U.S. generally accepted accounting principles (U.S. GAAP).
U.S. issuers may soon have the same option.
Only last month, several panelists at an SEC roundtable asked that if foreign companies could report using IFRS, why shouldn't U.S. companies be allowed to do the same? Tuesday's announcement of a "concept release" — occasionally floated by the commission "to solicit the public's views on securities issues so that we can better evaluate the need for future rulemaking" — is a small step in that direction.
"The actions announced today represent critical steps toward a future regulatory framework in which IFRS may be used on a stand-alone basis by foreign private issuers and possibly also by U.S. issuers," said John White, director of the SEC's Division of Corporation Finance, in a statement.
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