Securities and Exchange Commission.
The comment period closed on 23 May A key issue for the SEC is to determine under what conditions the Commission should "accept financial statements of foreign private issuers that are prepared using the standards promulgated by the International Accounting Standards Committee".
One outcome may be issuance of a rule proposal for public comment, which may include modifications of the financial statement requirements for registration and reporting forms utilised by foreign private issuers, such as Forms F-1 and F.
Another outcome could be retention of the status quo. We believe the immediate requirement for high quality and transparency can be substantially achieved without hindering the long-term objective of harmonization by providing: The proposed emphasis paragraph is the following: As described more fully in Note X to the financial statements, International Accounting Standards differ in some respects from accounting principles generally accepted in the United States of America.
The impact on net income and equity is disclosed in Note X for specified areas of differences. These differences may affect comparisons of these financial statements prepared in accordance with International Accounting Standards and financial statements prepared in accordance with accounting principles generally accepted in the United States of America.
A single set of high quality global accounting standards promotes confidence in capital markets, decreases cost of capital, and promotes efficiency of the markets. Until such single set of global accounting standards exists, a judgement will have to be made about the extent to which reconciliation to US GAAP will be required for entities that list in the United States and report their financial results using IFRS.
However, the consequences of those differences are subject to considerable debate.
For example, IFRS do not contain as much detailed guidance as US GAAP, which contains so much detailed guidance that the concepts underlying the standards can be circumvented by structuring transactions to achieve desired accounting results.
For details on the specific implementation of our recommendations for balancing the different objectives, please see the Deloitte Touche Tohmatsu comment letter to the SEC.Background.
Since , the Financial Accounting Standards Board (FASB) has been the designated organisation in the private sector for establishing standards of financial accounting and reporting in the United States of America.
Those standards govern the preparation of financial reports.
They are officially recognised as authoritative by the Securities and Exchange Commission (Financial. Why Is It Important to Have More Comparable Global Accounting Standards? How Does That Effort Fit With the FASB’s Mission?
The first priority of the Financial Accounting Standards Board (FASB) is to improve financial reporting for the benefit of investors and . The SEC protects investors in the $ trillion municipal securities markets that cities and towns rely on to provide neighborhood schools, local libraries and hospitals, public parks, safe .
APPENDIX C THE CORE STANDARDS PROJECT. A. The IASC and IOSCO. The International Accounting Standards Committee (IASC) is a private sector body whose membership includes all the professional accountancy bodies that are members of the International Federation of Accountants (IFAC).
Monitoring the securities industry requires a highly coordinated effort.
Congress established the Securities and Exchange Commission in to enforce the newly-passed securities laws, to promote stability in the markets and, most importantly, to protect investors. A publicly traded company in the United States does not come under SEC regulations as long as it follows the rules of GAAP False nternational Financial Reporting Standards (IFRS) are the international accounting rules that U.S.
companies must follow for their international operations.