The Convergence of IFRS and U.S. GAAP

What Will the SEC's Next Step Be?

Tom Tyson, PhD, CMA

In November 2008, the SEC published “Roadmap for the Potential Use of Financial Statements Prepared in Accordance with International Financial Reporting Standards by U.S. Issuers,” which delineated certain milestones it believed need to be achieved before it decides whether to require or permit U.S. -domiciled public corporations to adopt International Financial Reporting Standards (IFRS) (www.sec.gov/rules/proposed/2008/33-8982.pdf). The SEC also listed 14 specific questions and stated that its decision would be based, in part, on the feedback it received. More than 240 comment letters were published on the SEC website in response to the road map (www.sec.gov/comments/s7-27-08/s72708.shtml). Comments ranged widely, from support to opposition, and were received from multinational corporations, preparers (both private and public), investors, auditing firms (large and small), international bodies, trade associations, accounting organizations, academics, and students. The purpose of this article is to organize, analyze, and summarize these comment letters, then to present recent developments and put forth predictions about the SEC's eventual decision regarding IFRS.