Europe Finally Resorts to Making Empty Threats Over U.S. Stalling on IFRS

Posted on by Caleb Newquist

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.
We'll just assume that this De Rynck fellow has just gone off the reservation a bit and this is utter nonsense. Nobody puts FASB in the corner.
 

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Anyone Who Gives a Rat’s Behind About IFRS Needs to Mark July 7 on Their Calendars

‘Cause there’s gonna be a roundtable.

The Securities and Exchange Commission staff announced today that it will sponsor a roundtable in July to discuss benefits or challenges in potentially incorporating International Financial Reporting Standards (IFRS) into the financial reporting system for U.S. issuers.

The July 7 event will feature three panels representing investors, smaller public companies, and regulators. The panel discussions will focus on topics such as investor understanding of IFRS and the impact on smaller public companies and on the regulatory environment of incorporating IFRS.

“We must carefully consider and deliberate whether incorporating IFRS into our financial reporting system is in the best interest of U.S. investors and markets,” said SEC Chief Accountant James Kroeker. “This roundtable will provide an excellent opportunity for investors, preparers, and regulators to provide the SEC staff with valuable information that will help the Commission in its ongoing consideration of incorporating IFRS.”

See you there. If you manage to recover from your July 4th meat sweats, that is.

Hans Hoogervorst Doesn’t Want the U.S. to Worry Its Pretty Little Head About Losing Influence Over Accounting Rulemaking

Hoogervorst said U.S. sovereignty would be protected by the SEC having a final say before any IASB rule is introduced. “Such endorsement mechanisms provide an important ‘circuit breaker’ if the IASB produced a standard with fundamental problems for the United States,” Hoogervorst told an accounting conference. The SEC would remain in full control of enforcement. “So there is absolutely no danger of importing different enforcement standards from abroad into the United States,” the former Dutch finance minister added. [Reuters]