The Securities and Exchange Commission has proposed setting a roadmap for transitioning from U.S. GAAP to International Financial Reporting Standards by 2014.The SEC plans to issue a concept release setting several milestones for the transition, with the option for some large companies to make the transition earlier if they are leaders in their industries.
Companies that are among the top 20 in their industry according to market capitalization would be able to begin filing statements in IFRS for fiscal periods ending after Dec. 15, 2009. Approximately 110 companies in about 34 industries would be eligible.
In 2011, the commission will look at the progress on the milestones before finalizing the IFRS roadmap and examining the possibility of opening up the option for eligibility to file in IFRS to a larger group of companies.
One proposal would require companies to provide an audited reconciliation from IFRS to U.S. GAAP covering three years of IFRS financial statements included in the Form 10-K.
There will be a comment period of 60 days after the concept release is published in the federal register.
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