SEC Unveils IFRS Roadmap

On 14 November 2008, the US Securities and Exchange Commission (SEC) issued its long awaited proposed “Roadmap” on the potential use of International Financial Reporting Standards (IFRS) in financial statements prepared by US issuers - see details on the SEC website.

The Roadmap provides several milestones that, if achieved, could result in the mandatory use of IFRS in financial statements filed with the SEC by US issuers beginning in 2014, 2015 or 2016, depending on the size of the issuer.

Also included in the proposal is an option for voluntary early adoption for periods ending after 15 December 2009 that would be applicable to large US registrants meeting certain qualifying criteria based on industry and size - approximately 110 entities might be eligible for such early adoption, which would apply to their 2010 filings.

The SEC will consider the progress made towards achieving these milestones before it makes its final decision in 2011 about whether to proceed with the mandatory adoption of IFRS. The SEC had previously dropped the requirement for foreign companies to reconcile financial statements to U.S. Generally Accepted Accounting Principles (US GAAP) if the foreign filers are in full compliance with IFRS.

Today, more than 100 countries around the world, including all of Europe, currently require or permit IFRS reporting.

IASeminars offers a wide range of IFRS courses in many major cities across the United States. For further details, please click here.