SEC considers IFRS convergence

News Article - 24 May 2012
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America's Securities and Exchange Commission (SEC) has agreed to accept foreign private issuers' financial statements which have been prepared under international financial reporting standards (IFRS) and not reconciled with generally accepted accounting principles (GAAP).

In addition, the SEC has stated that it will consider the possibility of letting businesses in the US choose between IFRS or GAAP, which are more traditionally used in the country.

The announcements have been welcomed by big four firm Deloitte as a "testament to the success of the convergence process".

"Europe has managed the transition to IFRS and other countries, including the United States, can learn a lot from the European experience," said Deloitte's global chief executive officer James Quigley.

The firm cites recent findings by the International Corporate Governance Network which show that many investors across the globe support a single set of financial reporting standards.

Meanwhile, Christopher Cox, the firm's global chairman, told Accountancy Age: "Global accounting standards would allow investors to draw better and more accurate comparisons among issuers around the world."

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