In our previous post we have discussed on how IFRS is moving towards becoming a global accounting standard.
In 106 countries, all or most domestic public companies are required to report under IFRS, according to a review of 130 countries by the parent of the London-based International Accounting Standards Board. Another 15 countries permit or require the use of IFRS at least for financial-services companies.
USA is one of the 7 nations worldwide that still donâ€™t let their companies report according to the IFRS.
The U.S. Financial Accounting Standards Board and the IASB have been working together for more than a decade to align their rules of accounting.Still there is disagreementdespite their hope to wrap up that project next year.
There is a worry among the U.S investors that the moving U.S. companies to IFRS and adopting new approaches, wouldnâ€™t return sufficient benefit to justify the cost.
Ms. White, U.S Securities and Exchange Commissionâ€™s Chairman, has made a priority to give more direction on IFRS but didnâ€™t comment on whether she is considering giving U.S. companies an option to use international rules.
The U.S, however has exceptions and allows about 500 U.S.-listed foreign companies, such as HSBC Holdings PLC and Unilever PLC, to report results solely according to IFRS. The IASB views these exceptions as an indication of SECâ€™s belief that IFRS accounting will not harm the investors.