Kelley Drye's Securities and Capital Markets
Practice Group has prepared a client advisory titled, "SEC Moves To Encourage Use Of International Financial Reporting Standards In Financial Filings."
On August 27, 2008, the Securities and Exchange Commission (SEC) announced a proposal that, if approved, would allow U.S. public companies to include in their SEC filings financial statements prepared in accordance with International Financial Reporting Standards (IFRS), as issued by the International Accounting Standards Board in London. This proposal is just the latest development in an ongoing effort by the SEC to accommodate companies that use IFRS in their financial reporting.
What This Means to You
The SEC's proposed "roadmap" would give qualifying U.S. public companies the option of using IFRS as early as 2010, and could lead to the required use of IFRS by all U.S. public companies within the next six to eight years.