What will happen with IFRS in the US in 2011?

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What will happen with IFRS in the US in 2011? Resources Global Professionals Finance & Accounting Blog Monday, January 03. 2011 What will happen with IFRS in the US in 2011? So, here we are! The SEC has been stating for three years now that they will make the decision as to whether and/or when US public companies will be required to use IFRS in 2011! Here is my early 2011 prediction for what the SEC may do this year. First, the decision won't come in June 2011. Many have believed that since the G20 noted that date for the major convergence projects to be complete, that the SEC would also issue their final proposal by then. Highly unlikely. One of the milestones the SEC will weigh in making its decision is how far the IASB and FASB are progressing in their convergence activity by June, but will need to time to digest that progress. Fourth quarter 2011 is a more likely timeframe for a proposal to come out of the SEC. As Jim Kroeker, SEC Chief Accountant recently noted at a conference- don't expect white smoke to billow out of the SEC HQ building in Washington DC when the decision is made. We will likely get some notice as to the direction they are headed via speeches and the like long before the proposal is issued. Once issued, the SEC will give constituents a fair amount of time to weigh in before a final timeline is issued.

At a recent conference, an SEC staffer working on the IFRS workplan noted that a potential path may be what he termed "condorsement". This would encompass ongoing convergence in areas already on the project agendas, not permitting the FASB to issue any additional standards and allowing any new standards to come exclusively from the IASB. The IASB standards would then go through an "endorsement" process by the SEC. This path actually makes the most sense to me. And, I am going to venture to guess that it will be a likely one. Posted by Colleen Cunningham at 11:15 | Comments (0) | Trackbacks (0)
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