How IFRS Convergence Will Affect Accounting for Defined Benefit Plans

Emily K. Baculik, CPA, CMA

On February 24, 2010, the SEC held an open meeting during which it addressed the status of its road map for conversion to International Financial Reporting Standards (IFRS) by public companies in the United States. The commissioners said they generally support conversion to IFRS, but requested a work plan to address some issues prior to deciding whether or not to make the move. The SEC specifically emphasized that ongoing FASB/International Accounting Standards Board (IASB) convergence projects must be successfully completed before any conversion to IFRS. There are still several major projects outstanding under the memorandum of understanding (the “Norwalk Agreement”), which the FASB/IASB expect to have completed by 2011.