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The Daily

SEC May Let Companies File in IFRS Without GAAP Reconciliation

Chris Gaetano
Published Date:
Feb 23, 2016

SECURITIES-AND-EXCHANGE-COMMISSION-facebookToday, multinational firms that normally use International Financial Reporting Standards (IFRS) must convert their data into Generally Accepted Accounting Principles to satisfy U.S. regulators. Recent remarks by SEC Chief Accountant James Schnurr indicates this may change, as the agency is working on a proposal to let firms file in IFRS without a GAAP reconciliation, according to The Wall Street Journal. This would mean multinationals can use the same financial information for both their U.S. and foreign regulatory filings, saving them time and money. 

While there is little support in the U.S. for full IFRS adoption, the SEC has been exploring ways to incorporate the international standards into domestic filings. In June 2015, Schnurr said the commission is also considering allowing companies to supplement GAAP information with IFRS where applicable.