SEC Issues Concept Release On IFRS; Solicits Public Comment

The United States Securities and Exchange Commission (“SEC”) occasionally publishes “concept” releases to solicit the public’s views on securities issues so that it may better evaluate the need for future rulemaking.  Public comments are encouraged during an established time period.  

As provided through information courtesy of the National Association of Insurance Commissioners, the SEC has recently published a Concept Release to obtain information about the extent and nature of the public’s interest in allowing United States issuers, including investment companies subject to the Investment Company Act of 1940, to prepare financial statements in accordance with International Financial Reporting Standards (“IFRS”) as published by the International Accounting Standards Board for purposes of complying with the rules and regulations of the SEC.

A copy of the “Concept Release On Allowing U.S. Issuers To Prepare Financial Statements In Accordance With International Financial Reporting Standards” is attached for your review.  To file comments electronically on the Concept Release, click here, or follow the instructions provided in the attachment.

American issuers presently prepare their financial statements in accordance with Generally Accepted Accounting Principles (“U.S. GAAP”) as used in the United States.

The SEC has long advocated reducing disparity between the accounting and disclosure practices of the United States and other countries as a means to facilitate cross-border capital formation while providing adequate disclosure for the protection of investors and the promotion of fair, orderly and efficient markets. 

In the study prepared pursuant to a mandate from Congress, the SEC encouraged the efforts of the International Accounting Standards Committee (“IASC”), the international accounting standard setting body at the time, to develop a core set of accounting standards that could serve as a framework for financial reporting in cross-border offerings, and indicated the Commission’s intent to remain active in the development of those standards. These standards are now known as IFRS.

Public comments recently filed on the Concept Release can be viewed by clicking here.

To read previously-published material about the SEC’s public comment solicitation on IFRS, click on the headlines below:

SEC Soliciting Public Comment on Role of IFRS in the U.S.

SEC Soliciting Public Comment on Eliminating Reconciliation Requirement for IFRS Financial Statements

SEC To Propose Allowing Non-U.S. Companies To File Financial Results According To International Financial Reporting Standards

 

Should you have any comments or questions, please do not hesitate to contact this office.