SEC Proposes IFRS Roadmap to Enhance Comparability and Transparency
 
September 8, 2008
 

On August 27, 2008, the SEC proposed a Roadmap which outlines the possible transition by U.S. issuers from financial reporting in accordance with U.S. GAAP to international financial reporting standards (IFRS). The SEC will consider whether IFRS reporting – which is presently required or permitted by over 100 countries, including all of Europe – is in the public interest and beneficial to investors. Based on these considerations, in 2011, the SEC will decide whether to require or permit IFRS reporting for U.S. issuers. If so, by the beginning of 2014, certain U.S. issuers may need to prepare their financial statements in accordance with IFRS.

The Roadmap includes a proposal that would enable a limited number of eligible U.S. issuers to use IFRS before the SEC mandates any transition. To be eligible for voluntary IFRS reporting, an issuer must (i) operate with an “IFRS industry” (i.e., one where the 20 largest public companies in such industry, as measured by market capitalization on a global basis, use IFRS reporting more often than any other basis of accounting), and (ii) be among the 20 largest public companies in its industry worldwide.

The full text of the proposing release is expected to be available on the SEC’s Web site shortly.

http://www.sec.gov/news/press/2008/2008-184.htm

For more information, contact:

Kara L. MacCullough
305.789.7548
kara.maccullough@hklaw.com

Esther L. Moreno
305.789.7442
esther.moreno@hklaw.com

toll free: 1.888.688.8500

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