The Office of the Chief Accountant and Division of Corporation Finance of the SEC issued its first progress report on the Work Plan related to global accounting standards.
Earlier this year, the SEC had directed this office and division to provide the information needed to evaluate the implications of incorporating International Financial Reporting Standards (IFRS) into the financial reporting system for U.S. issuers of securities. The SEC has stated that following the completion of the Work Plan and related projects of the Financial Accounting Standards Board and International Accounting Standards Board, it will be in a position in 2011 to determine whether to incorporate IFRS into the U.S. financial reporting system.
The Work Plan addresses six key 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;
- Human capital readiness.
Click here to access the progress report.