The United States Securities and Exchange Commission (SEC) has in recent months launched a number of landmark consultations on the potential use of IFRS in the USA.
First, on 3 July the SEC published for public comment a proposal to accept from foreign private issuers financial statements prepared in accordance with IFRS without reconciliation to US GAAP. This is a significant and positive development. The proposed amendments would:
- apply to foreign private issuers that file financial statements that comply with the English language version of IFRS as published by the IASB (emphasis added); and
- allow those issuers to file those financial statements in their annual filings and registration statements without reconciliation to US GAAP.
The consultation closed on 24 September, with over 125 responses available on the SEC website (www.sec.gov), including a response from the ASB’s parent body, the Financial Reporting Council (FRC), which supports the SEC proposal. There is a also response from the European Commission, which supports the proposal, but also argues for acceptance of IFRS as adopted by the EU as being equivalent to IFRS as published by the IASB. At the time of going to press, the SEC is still considering the responses.
The second SEC consultation, launched on 3 August, is a Concept Release (equivalent to a Discussion Paper) seeking views on whether it should allow US issuers to file financial statements that comply with IFRS as published by the IASB, instead of US GAAP. This consultation is open until 13 November.
