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October 9, 2012
At a September 21 meeting of the Financial Accounting Standards Board and the Institute of Management Accountants, leaders of the two groups indicated that they would not release a response to the Securities and Exchange Commission’s (SEC) July staff paper on the potential path for U.S. adoption of international accounting financial standards (IFRS) until after the November 6 election, according to the Bloomberg BNA Accounting Blog post: “Accounting Groups Stall Responses to SEC’s IFRS Staff Paper until After November Election.”
Terri Polley, President and CEO of the Financial Accounting Foundation (FAF) said that FAF’s Trustees had not as yet formally discussed responding to the staff paper, issued July 13, 2012, but would consider it “over the next couple of months.”
The SEC staff paper, released in July, was a final report of what issues the Commission should look at to evaluate any recommendation for possible adoption of IFRS in the United States. It summarizes all of the work and analysis since 2010, but does not offer any recommendations or options for IFRS.
In May 2011, the SEC-issued staff paper titled “Work Plan for the Consideration of Incorporating International Financial Reporting Standards into the Financial Reporting System for U.S. Issuers Exploring a Possible Method of Incorporation,” was designed to generate comments regarding how to incorporate IFRS and the U.S. generally accepted accounting principles (GAAP). Recommendations included the “condorsement approach,” a process of gradually adopting pieces of IFRS and incorporating it into the GAAP over time.
Because of the election, an issue such as U.S. adoption of IFRS has fallen to the “back burner.” At the quarterly meeting of the FASB’s Advisory council on October 2, an SEC senior associate chief accountant, Jenifer Minke-Girard said: “At this point in time, there really isn\’t a timeline for further work” on IFRS. Those in the accounting industry in the U.S. appear to be disappointed that the SEC still hasn’t made a decision on whether the U.S. will adopt the IFRS or pieces of the standards. Additionally, the International Accounting Standards Board’s Chairman and the head of the European Financial Reporting Advisory Group’s Technical Experts Group, both expressed disappointment that the SEC report did not strongly support the use of IFRS.
As it pertains to appraisal, IFRS would require that public companies’ assets, including machinery and equipment, are recorded according to fair market value, and require 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.
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Tags: appraisals certified appraisals ifrs,
