Chair's corner.

• Author: Fletchall, Randy

We are in the midst of great change in our financial reporting system. Yes, there are some real challenges, but this is also a time of significant and exciting opportunities for CPAs, both preparers of financial statements and those who audit them. The ongoing move toward greater convergence of financial reporting standards should improve the efficiency and effectiveness of financial reporting in a global economy, fostering expansion by businesses, large and small, and investment opportunities, particularly in emerging markets.

As the capital markets become more global, the convergence of U.S. GAAP and International Financial Reporting Standards (IFRS) is a virtual prerequisite to reducing the complexity and increasing the understandability of financial information used for cross-border investment and financing purposes. As a result, the AICPA is committed to convergence, and to continuing its longstanding role as a leader in international accounting standards and as an advocate for the convergence efforts of the International Accounting Standards Board and the U.S. Financial Accounting Standards Board.

The recent pace of developments regarding the use of IFRS has been rapid. In Nov., the Securities and Exchange Commission said it was revising its roles to accept from foreign private issuers financial statements prepared in accordance with IFRS as published by the IASB without reconciliation to U.S. GAAR Of even greater importance was the Commission's concept release seeking input on allowing U.S. public companies to prepare financial statements in accordance with IFRS. The Commission, at press time, is evaluating the input received from the comment letter process and two roundtables held in Dec. A natural byproduct of these deliberations regarding an option is dialogue concerning whether U.S. companies should be required to report using IFRS at some future date.

The AICPA supports the ultimate goal of a single set of high-quality, comprehensive accounting standards to be used by public companies in preparing transparent and comparable financial reports throughout the world. Giving U.S. public companies the option to prepare financial statements in accordance with IFRS is an...