SEC Sends IFRS Proposal Out for Comment

As expected, the Securities and Exchange Commission voted to seek comment on a proposal to allow non-U.S. companies, that list on U.S. exchanges to reconcile their financials using International Financial Reporting Standards in lieu of U.S. generally accepted accounting principles. The comment period will be 75 days. To implement the change would require a second vote of the commissioners. As previously reported, the SEC will, in the upcoming months, issue a concept release to float the idea of giving U.S. firms the choice of reconciling in the international rules. That may lead to regulators eventually giving U.S. filers a choice between GAAP and IFRS. Currently, foreign companies trading on U.S. exchanges must convert their financial results to GAAP.