• Register
Return to: Home > News > Standards > SEC outlines plan for shift to IFRS

SEC outlines plan for shift to IFRS

  • Author: Nicholas Moody and Carolyn Canham
  • Published: 29 Aug 2008
  • Email
  • Print
Some large US public companies could be filing financial statements in IFRS as early as 2010 if a convergence road map proposed by the US Securities and Exchange Commission (SEC) is accepted.

The proposal involves moving the world’s largest economy from the use of US GAAP to the international standard by 2014. Last November, the regulator voted to allow foreign entities to file financial statements in the US using IFRS without reconciling with US GAAP – widely seen as the first step towards allowing US companies to use IFRS.

The SEC said it would make a decision in 2011 on whether to proceed with mandatory adoption for all companies. But as many as 110 qualifying companies could opt to begin using IFRS in fiscal years ending after 15 December 2009 – estimated to be around 14 percent of US market capitalisation. SEC chairman Christopher Cox said the increasing worldwide acceptance of financial reporting under IFRS, and US investors’ ownership of foreign securities, led the SEC to propose the “cautious and careful” plan. The multi-year road map, which will set out several milestones, has yet to be fully released. The SEC also proposes carrying out a staged mandatory adoption date beginning in 2014 for large accelerated filers, 2015 for accelerated filers and 2016 for non-accelerated filers.

Grant Thornton US managing partner for international client services Carol Banford told the International Accounting Bulletin she would not be surprised if the conversion dates are brought forward.

“I think once they see how these [110 qualifying] companies file … I think there will be more and more interest in moving this along at a faster pace,” she said.

DJ Gannon, a partner in Deloitte’s IFRS Solutions Centre, noted that since the debate has focused on public companies the impact of IFRS conversion on private companies had “gone under the radar screen”.

“What does this mean for the vast majority of US companies that are private companies? I think that is a whole other issue. This is not just about public companies; it is about private companies too,” he said.

Nicholas Moody and Carolyn Canham

Top Content

    Brazil: regulation and technology form basis for recovery

    Opportunities in the capital markets and the ever-growing influence of technology are expected to have a significant impact on the Brazilian accounting profession over the next 12 months, writes Paul Golden.

    read more

    Mentoring support and the opportunity to delegate

    Jon Lisby will be known to many from his former role as CEO of Kreston International. Here, he explains the background to his new venture, Global Alliance Advisory Services (GAAS), and how he aims to offer support to alliance CEOs.

    read more

    Global by name, global by nature

    Stephen Heathcote became chief executive officer of PrimeGlobal on 1 June 2019. Robin Amlôt met him to discuss the various new challenges that he has taken on, and his ambitions for the association.

    read more

    ARGA team, assemble!

    The new top team has been named that will see in root-and-branch reform at the Financial Reporting Council (FRC) as it transforms into the Audit, Reporting and Governance Authority (ARGA). Will the new duo be as dynamic as some are hoping? Robin Amlôt reports.

    read more


    As the Coronavirus (COVID-19) continues to spread across the world, the International Accounting Bulletin and The Accountant will be collating all the latest news and updates from the profession on the pandemic’s impact.

    read more
Privacy Policy

We have updated our privacy policy. In the latest update it explains what cookies are and how we use them on our site. To learn more about cookies and their benefits, please view our privacy policy. Please be aware that parts of this site will not function correctly if you disable cookies. By continuing to use this site, you consent to our use of cookies in accordance with our privacy policy unless you have disabled them.