Although full adoption of IFRS in the United States continues to face long odds, understanding IFRS remains important for U.S. investors and companies, according to the U.S. Securities and Exchange Commission’s (SEC) Chief Accountant, Wes Bricker.
Bricker delivered the keynote address at the AICPA Conference on Current SEC and PCAOB Developments in Washington, D.C. on December 5. He said it’s important for participants in U.S. capital markets to continue to monitor the quality of IFRS, partly because about 525 foreign private issuers with a combined market capitalization of approximately $7.3 trillion are able to file IFRS financial statements with the SEC without reconciliation to U.S. GAAP.
Bricker’s remarks also included a reminder that companies need to provide investors with disclosures about how FASB’s new revenue recognition standard will affect them. The new standard takes effect for public companies, certain not-for-profits, and certain employee benefit plans for annual reporting periods beginning after December 15, 2017. All other entities have an additional year to implement the standard.
The AICPA Conference on Current SEC and PCAOB Developments is the accounting profession’s premier event for practitioners with an interest in financial regulation and standard-setting.