CCR World Magazine

Commenting on the US Securities and Exchange Commission’s (SEC) final staff report on International Financial Reporting Standards (IFRS) in the United States, published Friday, Dr Nigel Sleigh-Johnson, Head of ICAEW’s Financial Reporting Faculty, said:

“It does not come as any surprise that the SEC staff report does not contain any recommendation on IFRS adoption. While the lack of a firm commitment from the SEC regarding if and when IFRS may be adopted in the United States is not ideal, establishing an international set of accounting standards is an aspiration that the G20 leaders continue to support.

“The steady acceptance of IFRS around the world lends credence to the claim of the International Accounting Standards Board (IASB) to be the prime contender for the role of principal global accounting standard setter.

“The fact that the US is still hesitant about a radical shift away from its own high quality standards should not be taken as any reflection on the suitability of IFRS reporting for other markets.

“Regardless of developments in the US, the IFRS Foundation now needs to adapt to a dramatically changed financial reporting landscape, with jurisdictions with diverse needs and traditions now members of the IFRS club. The IASB needs to focus on making sure that its standards are as high-quality as they can be, on engaging effectively with its increasingly diverse group of global stakeholders over its future agenda, on exploring the opportunities to reduce complexity, and on extending a helping hand to countries with implementation challenges. In short; on demonstrating beyond any credible challenge the value of a global set of financial reporting standards.”