The Convergence Project

The Matter of Financial Statement Presentation

Brian W. Carpenter, PhD, and Daniel P. Mahoney, PhD

Since 2008, when the SEC issued its proposed road map for transitioning from U.S. GAAP to International Financial Reporting Standards (IFRS), U.S. corporations and accounting firms have been investing considerable resources in preparation for what would arguably be the most significant financial reporting transformation in U.S. history. This road map, more formally known as SEC Release 34-61578, “Commission Statement in Support of Convergence and Global Accounting Standards,” initially identified 2014 as the year for U.S. issuers to begin using IFRS. On February 24, 2010, the SEC reaffirmed its support for a set of global accounting standards, but noted that 2015 would be the earliest such a system would be mandated.