IFRS Adoption: Some General Issues to Remember

Richard C. Jones, PhD, CPA

After its February 2010 meeting, the SEC issued a statement indicating support for International Financial Reporting Standards (IFRS) as the basis for globalized accounting standards. In addition, with respect to the adoption of IFRS for U.S. public company reporting, the SEC directed its staff “to develop and execute a work plan … to enhance both understanding of the Commission's purpose and public transparency in this area.” The document issued included the proposed work plan, along with several factors to be considered in the SEC's future deliberations on IFRS adoption. According to the statement, the SEC will readdress the IFRS adoption issue in 2011; should it decide on the adoption of IFRS for U.S. public company reporting, the first time U.S. public companies would apply that revised guidance would be 2015 or later.