The SEC today voted to seek comment on a proposal that the agency said could lead to the use of international financial reporting standards by U.S. issuers of securities starting in 2014, according to the SECs website.
Under the proposal, the SEC would decide in 2011 whether adoption of IFRS would be in the public interest and would benefit investors, according to an SEC statement on the website. U.S. issuers currently use U.S. generally accepted accounting principles.
Increasing integration of the worlds capital markets, under which two-thirds of U.S. investors currently own securities issued by foreign companies that report their financial information using IFRS, has made the establishment of a single set of high-quality accounting standards a matter of growing importance, according to the SEC statement.
An international language of disclosure and transparency is a goal worth pursuing on behalf of investors who seek comparable financial information to make well-informed investment decisions, SEC Chairman Christopher Cox was quoted on the website.
The deadline for public comment on the proposal would be 60 days after its publication in the Federal Register. It was unclear when the proposal would be published, said an SEC spokesman.