The foot-dragging by the SEC over IFRS is a sight to behold. At some point in time – the Triassic Period, or thereabouts – the G20 requested "key global accounting standards bodies [to] work intensively toward the objective of creating a single high-quality global standard." And yet on Friday, the SEC served up a steaming pile of jack squat much to the chagrin of IFRS enthusiasts everywhere. Somehow, someway, the SEC has managed to eloquently avoid making a decision on the matter. It's really quite an impressive feat of international politicking.
Well, the Europeans have HAD IT. Up until now, they've mostly been nice about things but this latest non-response response has really gotten their knickers in a twist, so much so that European Commission flacks are starting to chime in:
"The lack of a clear vision from the U.S. creates uncertainty and hampers the IFRS from becoming a truly global accounting language," said [European Commission spokesman Stefaan] De Rynck, who speaks on behalf of Michel Barnier, the EU commissioner responsible for financial services. "It is also becoming more difficult to justify the representation of jurisdictions not applying IFRS in the IASB governance framework," he added in remarks seen as taking a swipe at the United States.
Global Reporting Standards are gaining popularity among investors and finance executives, according to a new report by ACCA. Around 170 senior executives and investors were questioned. More than 40% said international financial reporting standards improve access to capital, while around 25% believe the global standards have lowered capital costs. ACCA chief executive Helen Brand said: “Growing support amongst CFOs and investors for [IFRS] must be considered carefully” by US regulator the SEC as it debates converging US GAAP with international standards. “We believe a positive answer from the SEC would give a tremendous boost to the cause of financial reporting and more importantly the world economy.” [