Roundtable on IFRS in the U.S. Markets
The SEC will host a roundtable discussion on December 13, 2007 to discuss issues arising from the current co-existence of two accounting standards in the U.S. markets – a development that has been accelerated by Europe’s decision to mandate IFRS for all public companies beginning in 2005. Under current rules, public companies with U.S. listings that are domiciled in other countries often use IFRS.
The roundtable will consist of two panels, which will look at the effect of allowing foreign companies the choice of whether to use IFRS or U.S. Generally Accepted Accounting Principles (U.S. GAAP), and denying that same choice to U.S. issuers. The first panel will explore these issues primarily from the perspective of U.S. investors, issuers, and markets, and the second panel primarily from the perspective of the global markets. Topics of discussion may include:
- What has been the experience in the last few years for U.S. investors dealing with two accounting systems in the U.S. capital markets – IFRS and U.S. GAAP?
- What will be the long-range effect of allowing foreign companies the choice of whether to use IFRS or U.S. Generally Accepted Accounting Principles (U.S. GAAP), and denying that same choice to U.S. issuers?
- If the same choice were to be extended to domestic issuers, what would be the effect on U.S. investors, issuers, and markets?
- How do the experiences of foreign capital markets with multiple accounting standards inform this discussion?
- What would be the advantages and disadvantages for U.S. investors if U.S. issuers were able to use IFRS?
- How does the current co-existence of two accounting standards in the U.S. markets affect capital formation? How would this assessment change if domestic issuers were given the same choice that foreign issuers have in U.S. markets?
