The AICPA issued a comment letter to the Securities and Exchange Commission recommending that U.S. public companies be given the option to adopt International Financial Reporting Standards. The letter was in response to the SEC’s May 26 staff paper on incorporating IFRS into the U.S. financial reporting system.
Whether or not the SEC incorporates IFRS into the financial reporting system for U.S. issuers through an endorsement/convergence approach as outlined in the staff paper, the AICPA believes that an option to adopt IFRS as issued by the International Accounting Standards Board would provide a level of consistency in the treatment of U.S. companies and foreign private issuers. It would also facilitate comparison of U.S. companies with their foreign competitors that use IFRS.
The AICPA has long supported the goal of a single set of high quality, comprehensive financial reporting standards; the Institute believes that one common financial reporting language would benefit investors, as well as issuers and capital markets.
The SEC is expected to make a decision later this year as to the adoption and method of adoption of IFRS.