SEC Releases Second Staff Paper on a Possible Incorporation of IFRS into U.S. GAAP: An Analysis of IFRS in Practice
As it continues to consider the factors relevant to a U.S. Securities and Exchange Commission (SEC) determination as to whether, when, and how the current financial reporting system for the U.S. should be transitioned to incorporate International Financial Reporting Standards (IFRS), on November 16, 2011, the SEC released a work plan: An Analysis of IFRS in Practice.
The purpose of the work plan is to consider specific areas and factors relevant to a Commission determination as to whether, when, and how the current financial reporting system for U.S. issuers should be transitioned to a system incorporating International Financial Reporting Standards.
Section I of the paper provides background, including the scope, process, and limitations of the paper’s analysis.
Section II presents observations of 183 companies in 22 countries in the following topic areas:
- Accounting principles
- Presentation of financial statements
- Accounting for assets, liabilities, shareholders’ equity, revenue, expenses, broad transactions, and certain industry-specific matters
Section III presents a summary of frequent areas of comment from the Division of Corporation Finance’s reviews, as part of its disclosure review program, of the most recent SEC filings of approximately 140 of the approximately 170 foreign private issuers that were registered with the Commission at the time of the analysis and disclosed that they prepared their financial statements in accordance with IFRS as issued by the International Accounting Standards Board (IASB).
You can read the entire report here.
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SEC Releases Staff Paper on a Possible Incorporation of IFRS into U.S. GAAP