On February 24, 2010, the SEC announced their support for a single set of high-quality globally accepted accounting standards, indicating that it would benefit U.S. investors. In connection with achieving this goal, the SEC indicated their continued support for convergence between U.S. Generally Accepted Accounting Principles (U.S. GAAP) and International Financial Reporting Standards (IFRS).
The SEC staff will execute a Work Plan, which will include consideration of IFRS as of today, and upon completion of convergence projects. By 2011, the SEC will decide whether to incorporate IFRS into the U.S. financial reporting system, and if so, when and how. The SEC staff will provide public progress reports on the Work Plan, as well as the status of the FASB and IASB convergence projects, beginning no later than October 2010 and frequently thereafter until the work is complete.
To read the full SEC press release click here. RubinBrown will continue to monitor the IFRS and U.S. GAAP convergence, and its impact on financial reporting for public companies.
Under U.S. Treasury Department guidelines, we hereby inform you that any tax advice contained in this communication is not intended or written to be used, and cannot be used by you for the purpose of avoiding penalties that may be imposed on you by the Internal Revenue Service, or for the purpose of promoting, marketing or recommending to another party any transaction or matter addressed within this tax advice. Further, RubinBrown LLP imposes no limitation on any recipient of this tax advice on the disclosure of the tax treatment or tax strategies or tax structuring described herein.