FRC Supports US Adoption of IFRS
The UK Financial Reporting Council (FRC) has responded to the US Securities and Exchange Commission (SEC) on its proposed roadmap on the use of International Financial Reporting Standards (IFRS) by US companies. The FRC believes that permitting US domestic issuers to use IFRS will be significant to the future development and credibility of IFRS.
The FRC encourages the SEC to permit US issuers who can demonstrate their competence in IFRS to be able to adopt IFRS in place of US Generally Accepted Accounting Principles (GAAP).
Paul Boyle, chief executive of the FRC said: “A decision by the SEC to permit US companies to use IFRS would enhance the global acceptance of IFRS as a set of high quality accounting standards.”
The FRC also encourages the SEC to clarify that US companies that do adopt IFRS will not be at risk of being required to return to US GAAP at a later date if the SEC decides not to mandate IFRS for all US companies.