USA: Work Plan Progress Report on IFRS

In the Commission Statement in Support of Convergence and Global Accounting Standards, the U.S. Securities and Exchange Commission directed the staff of the Office of the Chief Accountant of the SEC, with appropriate consultation with other Divisions and Offices of the Commission to develop and execute a work plan. The purpose of the Work Plan is to consider specific areas and factors relevant to a Commission determination in 2011 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 (IFRS).

The Work Plan addresses the following areas:

·    Sufficient development and application of IFRS for the U.S. domestic reporting  system;

·    The independence of standard setting for the benefit of investors;

·    Investor understanding and education regarding IFRS;

·    Examination of the U.S. regulatory environment that would be affected by a change in accounting standards;

·    The impact on issuers, both large and small, including changes to accounting systems, changes to contractual arrangements, corporate governance considerations, and litigation contingencies; and

·    Human capital readiness.

The Securities and Exchange Commission has now published a progress report in respect of its Work Plan for the Consideration of Incorporating International Financial Reporting Standards into the Financial Reporting System for U.S. Issuers.

See here for complete report.