The Convergence Blog™

SEC votes to publish Proposing Release on IFRSs for foreign issuers

On June 20, 2007, the U.S. Securities and Exchange Commission (SEC) voted unanimously to publish a "Proposing Release" on accepting from foreign private issuers financial statements prepared in accordance with International Financial Reporting Standards (IFRSs) without reconciliation to U.S. generally accepted accounting principles (GAAP). Currently, foreign private issuers (i.e., private-sector entities whose securities trade publicly in the U.S.) must either file financial statements prepared in accordance with U.S. GAAP or file statements under alternative standards and reconcile those statements to U.S. GAAP.

"Saying Goodbye to U.S. GAAP"

Excellent article by Ramona Dzinkowski in the June 2007 issue of Strategic Finance magazine: "Saying Goodbye to U.S. GAAP" (membership required).

"A Conversation with Bruce Pounder" at AccountingWEB.com

On June 15, 2007, the Top Story at AccountingWEB.com was "A conversation with Bruce Pounder: Accountants cannot ignore convergence". The interview gave me the opportunity to explain the phenomenon of Convergence and why ALL U.S. accounting professionals are likely to be impacted by it.

IFAC Survey on the Financial Reporting Supply Chain

On June 1, 2007, the International Federation of Accountants (IFAC) launched a global "Financial Reporting Supply Chain Survey" designed to obtain information that could strengthen the financial reporting process for publicly listed companies. The survey defines the financial reporting supply chain as "the chain of people and processes involved in the preparation, approval, audit, analysis and use of financial reports." All participants in the financial reporting supply chain, including investors and other users of financial reports, standard setters, preparers, auditors, academics, and regulators are encouraged to respond to the survey.

IFAC will use the survey responses and interviews to evaluate past recommendations it has made to improve the quality of the various links in the financial reporting supply chain, including those expressed in two previously-published IFAC reports:

• Rebuilding Public Confidence in Financial Reporting: An International Perspective (2003)
• Challenges and Successes in Implementing International Standards: Achieving Convergence to IFRSs and ISAs (2004)

IFAC will also identify newly emerging issues and innovations and develop proposals to further improve the quality of the financial reporting process.

To participate in the survey, visit http://www.ifac.org/financialreportingsurvey. IFAC estimates that it takes about 20 minutes to complete the survey. The deadline for responding is July 6, 2007. A final report will be issued by the end of the year and will be posted on the IFAC website.

"IFRS: Coming to America"

I highly recommend Lawrence M. Gill's article "IFRS: Coming to America" appearing in the June 2007 issue of the Journal of Accountancy. As Gill states in his article, "IFRS is unquestionably and inexorably in the future of American CPAs, and the future is now."