IFAC Response to the US SEC Announcement

The International Federation of Accountants (IFAC) is encouraged that the US Securities and Exchange Commission (SEC) today confirmed its intent to support adoption of global accounting standards for US companies and reduce uncertainty about the future use of International Financial Reporting Standards (IFRSs). We are disappointed that it is not seeking an adoption date closer to the ambitions of the G-20--by June 2011--and urge the SEC to allow for early adoption of IFRSs for severely affected multinational companies.

It is vital that all governments adopt and implement common global standards, not only for accounting, but also for auditing and for auditor independence. These standards are crucial, as having consistent financial information around the world strengthens capital markets, enhances cross-border activity, and reduces risks and uncertainties in the capital markets. Continuing on the path of convergence is a helpful interim step, but a commitment to adoption is necessary for the world to truly have access to a single set of global standards.

Robert L. Bunting, President

Related Resources

• Companies Lagging on Business Model Reporting; Background Paper Released to Tackle the Issue
• Global Accountancy Leaders Identify Major Themes for 2013
• IFAC CEO Ian Ball Departs - Assumes Volunteer Role of Principal Advisor
• IFAC Outgoing CEO Calls on Russian Presidency of G-20 to Advance Adoption and Implementation of International Public Sector Accounting Standards
• IFAC Welcomes G-20 Focus on Public Sector Financial Management, EC Report on Accrual-based Accounting