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July 15, 2012
On July 13, 2012, the U.S. Securities and Exchange Commission (SEC) released a 127-page report providing a thorough discussion of the issues related to International Financial Reporting Standards (IFRS) in the U.S. The report notes that a full switch to IFRS would strain the resources of U.S. companies and that a stepped transition has more public support. However, as expected, the report did not contain specific recommendations on whether U.S. public companies should be allowed or required to adopt IFRS for financial reporting. SEC spokesman John Nester said that the SEC will make a recommendation on IFRS, but
did not say when. A recent article in CGMA Magazine, “US regulator’s report offers detailed look at IFRS,” provided an overview and some highlights from the report, including:
- The progress of the development of IFRS
- Maintenance of IFRS by the IFRS Interpretations Committee (IC) of the International Accounting Standards Board (IASB)
- The extent of the IASB’s use of national standard setters
- Application and enforcement
- Governance of the IFRS Foundation
- Funding of the IFRS Foundation (the IASB’s parent organization)
According to the report, U.S. companies have expressed concern about a full adoption of IFRS because of the expected high costs of moving to the international standards. As it pertains to appraisal, IFRS requires that public companies’ assets, including machinery and equipment, are recorded according to fair market value, and requires that an independent appraiser be used in the majority of cases to determine a fair market value of the assets. For more information on the differences between IFRS and the current U.S. standards, GAAP, click here. To learn more about IFRS and appraisal and EquipNet’s appraisal services, visit The Asset Accuracy Resource Center or contact us.
Categorias: Uncategorized
Tags: appraisals ifrs,
