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State Board Report

June 2015

Since December the Securities and Exchange Commission’s staff has been hearing from preparers, investors, auditors, regulators and standard-setters about SEC Chief Accountant James Schnurr’s suggestion that domestic issuers be allowed to provide International Financial Report Standards (IFRS)- based information as a supplement to U.S. GAAP financial statements without requiring reconciliation. Speaking at the 2015 Baruch College Financial Reporting Conference in May, Mr. Schnurr reported the key themes the SEC staff heard from their discussions were:

  • "There is virtually no support to have the SEC mandate IFRS for all registrants.
  • "There is little support for the SEC to provide an option allowing domestic companies to prepare their financial statements under IFRS.
  • "There is continued support for the objective of a single set of
    high-quality, globally accepted accounting standards."

Mr. Schnurr said that while there remain differences in the FASB’s and IASB’s standards, through their efforts at convergence, they have made significant contributions to the objective of a single set of standards.

It is critical that the FASB and IASB continue to work together, Mr. Schnurr maintains: "By working so closely over the past decade, both the FASB and the IASB understand each other’s constituent base much better. Through that understanding, the boards were able to successfully eliminate differences in many areas of the convergence projects…I believe that, for the foreseeable future, continued collaboration is the only realistic path to further the objective of a single set of high-quality, global accounting standards."

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