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IFRS and the U.S. Financial Reporting System, International Financial Reporting Standards, IFRS and SEC, IFRS and GAAP
The SEC issued the Commission Statement in Support of Convergence and Global Accounting Standards in February 2010 to reaffirm its position that IFRS was best positioned to serve as the single set of high-quality globally accepted accounting standards and indicated that its staff would continue its evaluation of IFRS and a determination was expected to be made in 2011 as to whether, when, and how to incorporate IFRS into the financial reporting system for U.S. issuers. However, 2011 has come and gone and the SEC still has not yet made a decision. The SEC has indicated that it will not incorporate IFRS into the financial reporting system for U.S. issuers unless such a change is in the best interest of U.S. investors and capital markets. Whatever decision eventually made by the SEC, hopefully, is indeed the most beneficial one for U.S. investors and capital markets. This paper provides an overview of the possible incorporation of IFRS into the U.S. financial reporting system.