The Convergence Blog™

SEC Votes to Publish Concept Release On IFRSs for U.S. Issuers

On July 25, 2007, the U.S. Securities and Exchange Commission (SEC) voted unanimously to publish a "Concept Release" to obtain information about the extent and nature of the public's interest in allowing U.S. issuers to prepare financial statements in accordance with International Financial Reporting Standards (IFRSs) for purposes of complying with the SEC's rules and regulations. Currently, U.S. issuers must prepare their financial statements in accordance with generally accepted accounting principles as used in the United States ("U.S. GAAP").

U.S. GAAP vs. IFRS: Accounting for Customer Loyalty Programs

My comments on the differences between U.S. GAAP and IFRS with regard to accounting for customer loyalty programs appeared in the "Accounting Industry Update" section of the July 17, 2007 issue of Compliance Week (subscription required). I have posted a more-detailed analysis of the situation here.

"Simplifying Global Accounting"

I highly recommend the interview with Sir David Tweedie, Chairman of the International Accounting Standards Board (IASB), published in the July 2007 issue of the Journal of Accountancy. The article is titled "Simplifying Global Accounting", and in it, Sir David shares insights on convergence of U.S. GAAP and International Financial Reporting Standards, principles-based accounting, XBRL, accounting education and other issues facing the global accounting profession.

"International Hire"

My comments on the increasing globalization of the accounting labor market were featured in the article "International Hire" by Christine Bockelman in the July 2007 issue of INSIGHT Magazine. As I have always emphasized, Convergence will have very significant, very personal career consequences for accounting and finance professionals in the United States.

SEC publishes Proposing Release on IFRSs for foreign issuers

On July 3, 2007, the U.S. Securities and Exchange Commission (SEC) published 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.

The full text of the Proposing Release is available at http://sec.gov/rules/proposed/2007/33-8818.pdf.

Comments on the Proposing Release will be accepted through September 24, 2007. Comments may be submitted here. Comments received to date may be viewed at http://www.sec.gov/comments/s7-13-07/s71307.shtml.

"Boards Agree On New Tax Rule, Kinda Sorta"

My comments on the FASB-IASB joint convergence project on accounting for income taxes were featured in the article "Boards Agree On New Tax Rule, Kinda Sorta" by Tammy Whitehouse in the June 26, 2007 issue of Compliance Week (subscription required). I have posted background information on the project here.