IFRS by Stealth? Decoding the SEC's Convergence Plan

  • by Davin Wilfrid, Former Contributing Editor, SAP Experts
  • April 30, 2010
Management
The SEC recently pushed back the deadline for converting to IFRS, instead opting to study convergence between IFRS and US GAAP. We examine how the SEC arrived at its decision, and gather thoughts from an expert panel on what SAP companies should do next.

The US Securities and Exchange Commission (SEC) recently announced a plan to push back US adoption of International Financial Reporting Standards (IFRS) by at least one year (to 2015) as it studies ways to bridge the gap between IFRS and US Generally Accepted Accounting Principles (US GAAP).

While the announcement means companies have more time to plan their IFRS projects, at least one expert warns that convergence between IFRS and US GAAP may not be much different from an outright IFRS adoption project.

“I’ve heard this called ‘IFRS by stealth,’” says Gary Fullmer of Ernst & Young. “You need to be very aware of what’s going on, because now they’re pulling the two standards together.”

Davin Wilfrid

Davin Wilfrid was a writer and editor for SAPinsider and SAP Experts. He contributed case studies and research projects aimed at helping the SAP ecosystem get the most out of their existing technology investments.

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