FAF and FASB response to the SEC's Roadmap on the potential use of IFRSs in the US

The Financial Accounting Foundation (FAF) and the Financial Accounting Standards Board (FASB) in their feedbacks to the SEC's Roadmap for the Potential Use of Financial Statements Prepared In Accordance With International Financial Reporting Standards (IFRS) by U.S. Issuers mentioned that

they support the ultimate goal of having the worldwide use of a single set of high-quality accounting standards for both domestic and cross-border financial reporting. However, they strongly believed that decisions about the role that a single set of high-quality global accounting standards plays in investor protection and the efficiency and effectiveness of capital formation and allocation involve complex, multidimensional and controversial issues would require careful, measured, and comprehensive study and analysis. The study would help to identify among others:

• the implications for investors and other market participants of implementing IFRS in the US
• the implications of possible changes in the U.S. financial reporting system
• the strengths, weaknesses, costs, and benefits of possible approaches the US should take in moving toward that goal

With respect to the proposal for limited early use of IFRS in certain circumstances, they believed the SEC should not permit an option unless and until there would be a decision that all U.S. public companies required to adopt IFRS. Permitting choice before that decision would create the potential for a two- GAAP system for an extended period of time, resulting in unnecessary complexity and additional costs for investors and other capital market participants.

http://www.fasb.org/FAF_SEC_Roadmap_Response_Final_with_Appendix.pdf      
11 March 2009