The Securities and Exchange Commission ("SEC") has extended the timeline and now envisions 2015 as the earliest possible date for the required use of International Financial Reporting Standards ("IFRS") by public companies.
The SEC's new timeline offers issuers some breathing room from the 2014 deadline originally spelled out in their proposed roadmap unveiled in 2008. The SEC is also not pursuing any early adoption option and, accordingly, withdrew the proposed rules that would have permitted it, and will reconsider this position at a later date.
The extension allows more time for assessing the impact of IFRS on the U.S. reporting environment and whether to move ahead with a mandate to use IFRS at that time. The SEC also directed its staff to publish periodic progress reports, starting no later than October, which will be available to the public.
Public companies will continue to file financial statements utilizing U.S. GAAP through 2014. If IFRS is required in 2015, the previously filed financial statements for the years 2014 and 2013 will need to be restated and refiled utilizing IFRS. Additionally, companies filing an initial public offering in 2015, may need to provide information on an IFRS basis, for example, MD&A for the last 5 years, beginning with 2011. So, the earlier you start identifying and understanding the difference between U.S. GAAP and IFRS, the better informed and prepared you will be.
To review the release, "SEC Release Nos. 33-9109; 34-61578" in its entirety, click here.
If you have any questions in regards to this matter, please contact Harriet Leung or Mark Kelly at Rowbotham & Company LLP.
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