SEC Issues Update Offering "Condorsement" as Possible Path to IFRS

May 27, 2011 - PRLog -- On Thursday, the SEC’s Office of the Chief Accountant released a staff paper concerning the possible “Condorsement” approach to International Financial Reporting Standards (“IFRS”) Convergence.  The paper functions as an update to the SEC’s Work Plan for incorporating IFRS into the financial reporting system for filers in the United States and as a solicitation for public feedback, which needs to be posted on the SEC website by July 31st.

The Commission’s 24 page staff paper summarizes other jurisdictions’ approaches to adopting IFRS, offers details on the proposed “Condorsement” framework, and explains the benefits and risks of moving to IFRS in the United States.  It states, “[w]hile the Staff’s work on the Work Plan continues, including assessing the quality of the standard setting process, the focus of this Staff Paper is to outline a possible approach for incorporation of IFRS into the U.S. financial reporting system, if the Commission were to decide that incorporation of IFRS is in the best interest of U.S. investors.”

The paper explores the possible framework of “Condorsement” that would serve to lessen the cost of transition by both endorsing IFRS and converging it with US GAAP over a period of time while enabling the SEC to maintain control over the regulatory reporting process in the United States.

Click here to access the full staff paper: http://sec.gov/spotlight/globalaccountingstandards/ifrs-w...

For more information please contact Brian Markley, Partner National Technical Accounting & Regulatory Advisory Services, at bmarkley@solomonedwards.com.

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