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SEC to Decide on IFRS in Weeks or Days

The SEC's decision whether to move the U.S. financial sector to IFRS will come

At a recent CFO networking conference hosted by the Wall Street Journal, Hans Hoogervorst, head of the International Accounting Standards Board, expressed his confidence that the Securities and Exchange Commission would soon embrace International Financial Reporting Standards, according to the WSJ.

The United States has been dragging its feet on a decision regarding IFRS, and was recently criticized for its reluctance to take a position. IFRS Trustees Chairman Michel Prada implored holdout countries to come on board. According to Hoogervorst, the U.S. decision may come sooner than expected.

"Now we are hearing it's a matter of weeks if not days," he said. "We need the U.S. on board to be a truly global standard and what I would really appreciate is to have the expertise of the SEC on board as well."

According to Hoogervorst, the principles-based accounting standards will significantly benefit countries around the world by allowing investors to spread their risks globally across markets that have a single set of financial rules, the Journal reported. By basing the standards in principles, rather than specific rules, it will be more difficult for organizations to fleece investors, he said.

You can get the latest update on IFRS convergence and  a regulatory update focused on  Financial Instruments, Leasing, and Revenue Recognition, by attending Proformative's The Ripple Effect: Convergence of Financial Instruments, Leasing, and Revenue Recognition for IFRS and US GAAP webinar which features a panel with a representative from each of the Big Four.