SEC Chief Accountant Discusses Harmonizing U.S. and International Accounting Standards

SEC Chief Accountant James Schnurr spoke at the 2015 Baruch College Financial Reporting Conference. He discussed the convergence of International Financial Reporting Standards ("IFRS") and U.S. Generally Accepted Accounting Principles ("GAAP").

Mr. Schnurr provided an overview of key concerns and issues that stakeholders have raised about harmonizing accounting standards: (i) there is virtually no support for having the SEC mandate IFRS for all registrants, (ii) there is little support for the SEC to allow domestic companies to prepare their financial statements under IFRS, and (iii) there is continued support for the establishment of a single set of high-quality globally accepted accounting standards.

Mr. Schnurr disagreed with the suggestion that the IFRS and GAAP will never achieve uniformity between their two sets of accounting standards, and provided examples of key areas in which accounting standards have converged entirely or substantially. Mr. Schnurr stated that consistency in accounting standards is important, but added that consistent implementation and application of the converged standards is equally important. Specifically, Mr. Schnurr emphasized that he is "encouraged" by the willingness of the International Accounting Standards Board ("IASB") to consider the issues raised and, where necessary, deliberate further and amend the standard "to provide greater clarity for all stakeholders."

See: James Schnurr's Speech.