AICPA supports SEC proposed roadmap for transitioning to IFRS for public companies.

• Position: Just in ...

On Aug. 27, the Securities and Exchange Commission unanimously approved releasing a proposed roadmap that would lay out a timeline and milestones for continuing U.S. progress toward acceptance of International Financial Reporting Standards for public companies. The long-anticipated proposal, which will have a 60-day comment period (www.sec.gov), marks an important stage in what the AICPA believes will be the eventual move from U.S. generally accepted accounting principles to international accounting standards for public company filings. In Nov. 2007, the SEC announced foreign fliers in the U.S. could file using IFRS as promulgated by the International Accounting Standards Board without reconciliation to U.S. GAAP.

The SEC said the proposed roadmap would allow 110 of the largest publicly held U.S. companies to begin using IFRS instead of U.S. GAAP as early as 2010 (for periods ending after Dec. 15, 2009). The roadmap's anticipated adoption date of IFRS for U.S. issuers is for years ending on or after Dec. 15, 2014, although the SEC could decide to stage the conversion to IFRS depending upon company size. That timeline is consistent with an AICPA survey conducted earlier this year showing that a majority of members polled believe it will take three to five years to prepare for IFRS: 34% said they would need three years; 31% said it would take four or five years.

"The AICPA supports one set of high-quality global accounting standards for public companies," said Barry Melancon, AICPA president and CEO. "We believe the capital markets ultimately will insist on IFRS for public companies. This action by the SEC continues a robust and thoughtful debate that is critical as the transition occurs."

A leading supporter of an orderly transition, the Institute is working toward the following key steps:

* Ongoing collaboration among the Financial Accounting Standards Board, the International Accounting Standards Board and the International Accounting Standards Committee Foundation to bring the milestones to fruition and achieve convergence.

* Making certain the voice of U.S. CPAs is heard internationally.

* Preparing for the shift to IFRS-based reporting using eXtensible Business Reporting Language (XBRL).

* Ensuring accounting educators, textbook authors and educational institutions prepare future professionals to use IFRS.

* Incorporating questions about IFRS into the Uniform CPA Examination.

"A critical initial step is the development of a project plan...