On July 25, the Securities and Exchange Commission voted unanimously to publish a Concept Release for public comment on allowing U.S. issuers, including investment companies, to prepare their financial statements using International Financial Reporting Standards (IFRS) as published by the International Accounting Standards Board. Under the SEC's current rules, U.S. issuers are required to prepare financial statements in accordance with generally accepted accounting principles (GAAP). The Concept Release is an information-seeking document that describes the policy issues and, in the form of questions, seeks public input regarding the possibility of allowing U.S. issuers to report under IFRS.
SEC Chairman Christopher Cox stated "Having a set of globally accepted accounting standards is critical to the rapidly accelerating global integration of the world's capital markets."
The current proposal follows an SEC proposal in June 2007 to eliminate the requirement that foreign private issuers using IFRS reconcile their financial statements to GAAP.
The comment period extends for 90 days after the Concept Release is published in the Federal Register.