SEC Ends Reconcilation of IFRS to US GAAP

In an effort to promote the global consistency of financial accounting standards, the SEC has eliminated the requirement that foreign private issuers reconcile their IFRS-driven finnacial statements to US GAAP. But the new rule applies only if the IFRS being used by the foreign private issuers were the IFRS as adopted by the IASB. The fly in this particular ointment is that, according to commenters, no nation is the world has adopted IFRS as prepared by the IASB. Even the European Union has adopted its own version of IFRS. These so-called jursdictional IFRS profiletate based on national needs that are at least perceived and hence become real. The SEC is, of course, correct in its efforts to promote consistent IFRS. But, the gold plating of IFRS is a reality. Many people, including IASB Chair David Tweedie, have recognized inconsistent interpretations of IFRS as the main impediment to IFRS, thatis why we have IFRIC. This issue is not going away and will likely intensify in the wake of the SEC's action.