On August 7, 2007, the U.S. Securities and Exchange Commission (SEC) published 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").
The full text of the Concept Release is available at http://sec.gov/rules/concept/2007/33-8831.pdf.
Comments on the Concept Release will be accepted through November 13, 2007. Comments may be submitted here. Comments received to date may be viewed at http://sec.gov/comments/s7-20-07/s72007.shtml.
Commentary: For readers of The Convergence Blog, the SEC's Concept Release comes as no surprise. It underscores the fact the Convergence is not a "foreign" concept that represents a forsaking of the interests of U.S. companies and their investors. Instead, Convergence has intense support within the U.S. as evidenced by the SEC aggressive efforts to bring it about because it makes economic sesnse for U.S. investors. If the kinds of rule changes described in the Concept Release ultimately come about, U.S. issuers will have new opportunities to do something that many companies have long had the incentive to do, i.e., use a single set of financial reporting standards globally.
