Speech by SEC Commissioner:
Statement at Open Meeting Regarding Commission Statement in Support of Convergence and Global Accounting Standards
Commissioner Troy A. Paredes
U.S. Securities and Exchange Commission
February 24, 2010
Thank you, Chairman Schapiro.
Today we consider the Commission’s Statement in Support of Convergence and Global Accounting Standards (the “Statement”), the next step in our consideration of the potential role for IFRS in the financial reporting system for U.S. issuers. I support the Statement and recognize the benefits — such as, enhanced comparability — associated with a single set of high-quality globally accepted accounting standards. That said, although a single set of high-quality globally accepted accounting standards is worth striving toward, what will it take to achieve this goal in practice? Is it reasonable to conclude that, over time, IFRS will be adapted and applied in a sufficiently consistent manner across jurisdictions so that the goal of comparability is advanced meaningfully? Is increased international comparability worth the cost of transitioning from U.S. GAAP to IFRS for certain issuers, such as smaller companies or even many larger companies that do not compete internationally?
The Work Plan that accompanies the Statement reflects a commitment to a rigorous decision-making process that will help ensure that we reach a well-grounded and sound decision. I would like to compliment the staff on the careful and thoughtful analytical approach that the Work Plan reflects. My counsel and I look forward to working with you and to reviewing your findings.
In closing, I want to join my colleagues in thanking the many members of the staff, particularly those in the Division of Corporation Finance and the Office of the Chief Accountant, who have worked on this Statement and the Work Plan. Thank you for your hard work.