IFRS & Global Convergence
International Financial Reporting Standards (IFRS) are the accounting standards developed by the International Accounting Standards Board (IASB) that are fast becoming the global standard for the preparation of public company financial statements. The IASB is an independent accounting standard-setting body based in London.
The AICPA officially recognizes the IASB as an accounting body for purposes of establishing international financial accounting and reporting principles. The independence of the IASB, however, has come in to question and remains a key concern for the SEC.
In 2011, the SEC plans to decide whether to incorporate IFRS into the U.S. financial reporting system, and if so, when and how – assuming that the convergence project and the SEC work plan are complete.