Work Plan for the Consideration of Incorporating International Financial Reporting Standards into the Financial Reporting System for U.S. Issuers - Final Staff Report - July 13, 2012

Aug 29, 2026

Uploaded by Eden

Final Staff Report dated July 13, 2012 covering the U.S. Securities and Exchange Commission Office of the Chief Accountant work plan on incorporating International Financial Reporting Standards (IFRS) for U.S. issuers. The report summarizes staff observations and analyses across six key study areas, including methodology, the sufficiency of IFRS development and application for the U.S. domestic system, comparability within and across jurisdictions, auditability and enforceability, and independent standard setting for investor benefit. It clarifies the Commission has expressed no view and has not approved the report by action.

LanguageEnglish

CategoryResearch & Report

FormatPDF

Pages137

Reading Time5 h 45 min

AccessFree to download

Executive Summary

Methodology

Focus of the Staff’s Work

Summary Findings

Development of IFRS

Interpretive Process

IASB’s Use of National Standard Setters

Global Application and Enforcement

Governance of the IASB

Status of Funding

Investor Understanding

Sufficient Development and Application of IFRS for the U.S. Domestic Reporting System

Summary Observations

Comprehensiveness of IFRS

The Boards’ MoU and Other Joint Projects

Standards with a Similar Objective, that Are Substantially Converged, or Both

Fundamental Differences

Industry Guidance

Comparability Within and Across Jurisdictions

Staff Analysis of IFRS in Practice

Formal Interpretative Process

Auditability and Enforceability

Principles versus Rules

Effect of Audit Firm Structure on Comparability

Enforcement and Compliance

International and Other Regulatory Bodies

Independent Standard Setting for the Benefit of Investors

Summary Observations

Overview of the IASB’s Governance Structure

July 13, 2012 Work Plan for the Consideration of Incorporating International Financial Reporting Standards into the Financial Reporting System for U.S. Issuers Final Staff Report OFFICE OF THE CHIEF ACCOUNTANT UNITED STATES SECURITIES AND EXCHANGE COMMISSION This is a paper by the Staff of the U.S. Securities and Exchange Commission. The Commission has expressed no view regarding the analysis, findings, or conclusions contained herein. Introductory Note The following report was prepared by the staff of the U.S. Securities and Exchange Commission to summarize the observations and analyses of the staff regarding six key areas identified for study in the Work Plan for global accounting standards. The Commission directed the staff to develop and execute the Work Plan in February 2010. At that time, the Commission issued a statement indicating that the information obtained through the Work Plan, among other considerations, would aid the Commission in evaluating the implications of incorporating International Financial Reporting Standards into the financial reporting system for U.S. issuers. The Commission believes it is important to make clear that publication of the Staff Report at this time does not imply—and should not be construed to imply—that the Commission has made any policy decision as to whether International Financial Reporting Standards should be incorporated into the financial reporting system for U.S. issuers, or how any such incorporation, if it were to occur, should be implemented. Although the Staff Report is constructive and an important contribution, the Work Plan did not set out to answer the fundamental question of whether transitioning to IFRS is in the best interests ofthe U.S. securities markets generally and U.S. investors specifically. Additional analysis and consideration of this threshold policy question is necessary before any decision by the Commission concerning the incorporation ofIFRS into the financial reporting system for U. S. issuers can occur. The Staff Report has not been approved by Commission action and does not necessarily reflect the views of the Commission or any Commissioner. Work Plan for the Consideration of Incorporating International Financial Reporting Standards into the Financial Reporting System for U.S. Issuers Final Staff Report July 13, 2012 OFFICE OF THE CHIEF ACCOUNTANT UNITED STATES SECURITIES AND EXCHANGE COMMISSION This is a paper by the Staff of the U.S. Securities and Exchange Commission. The Commission has expressed no view regarding the analysis, findings, or conclusions contained herein. Table of Contents I. Executive Summary ............................................................................................................ 1 A. Methodology ........................................................................................................... 2 B. Focus of the Staff’s Work ....................................................................................... 2 C. Summary Findings .................................................................................................. 4 1. Development of IFRS ................................................................................. 4 2. Interpretive Process..................................................................................... 4 3. IASB’s Use of National Standard Setters ................................................... 5 4. Global Application and Enforcement ......................................................... 5 5. Governance of the IASB ............................................................................. 5 6. Status of Funding ........................................................................................ 6 7. Investor Understanding ............................................................................... 6 II. Sufficient Development and Application ofIFRS for the U.S. Domestic Reporting System ....

FAQs

What is the purpose of the work plan addressed in the report?

It outlines a study plan to examine considerations for incorporating IFRS into the U.S. financial reporting system for U.S. issuers, including the staff’s observations and analyses across defined areas.

Has the SEC made a policy decision on adopting IFRS based on this report?

No. The publication of the Staff Report does not imply that the Commission has made any policy decision on whether IFRS should be incorporated or how it would be implemented.

What major areas does the staff study in the report?

The report organizes analysis around executive summary items and, in the main sections, sufficient development and application of IFRS for the U.S. domestic system, including comprehensiveness, comparability, and auditability/enforceability, and finally independent standard setting for investor benefit.

Aug 29, 2026

Uploaded by Eden