Center For Audit Quality - IFRS

IFRS

The U.S. Securities and Exchange Commission continues to explore whether to incorporate international financial reporting standards (IFRS) into the U.S. financial reporting system. The CAQ supports the adoption and universal application of a single set of high quality global accounting standards and that IFRS is best positioned to be that single set of standards.

On February 24, 2010, the U.S. Securities and Exchange Commission approved a statement that makes clear that the Commission continues to believe that a single set of high-quality globally accepted accounting standards would benefit U.S investors and directed SEC staff to execute a Work Plan by 2011 to determine whether to incorporate international financial reporting standards (IFRS) into the U.S. financial reporting system.

In July 2012, the SEC released a staff report on the IFRS Work Plan. In Response to the staff report, the CAQ issued a statement that read, “While staff recommendations of specific approaches or dates for the possible incorporation of IFRS into the U.S. financial reporting system was beyond the scope of the staff’s Work Plan, we hope the information in the report will facilitate an SEC determination on incorporation of IFRS in the near future.”

In July 2009, the CAQ released its Guide to IFRS in the interest of an informed public discussion about possible U.S. transition to IFRS. The purpose of the Guide is to provide investors, policymakers and other capital market stakeholders a timely, accessible and objective introduction to the current debate over a single set of high quality global accounting standards.