FASB has given a ringing endorsement to an SEC proposal that could lead to the use of international financial reporting standards by U.S. issuers of securities starting in 2014.
By setting a proposed road map, the SEC has provided forward momentum to the goal of setting high-quality accounting standards both in the U.S. and internationally, and weve been strongly committed to this goal since 2002, FASB spokesman Neal McGarity said in an interview today. Mr. McGarity declined to comment on what might happen to FASB if the SEC proposal becomes reality.
The Financial Accounting Standards Board, Norwalk, Conn., sets accounting standards for U.S. corporations. U.S. issuers currently use U.S. generally accepted accounting principles.
Under the SEC proposal, the agency 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 agencys website.
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.
Public comment on the proposal would be accepted for 60 days after its publication in the Federal Register.