Topics: FASB, Financial Accounting Standards Board, Financial Reporting, International Accounting Standards, International Accounting Standards Board, SEC, Securities and Exchange Commission
Summary: James Kroeker of the SEC spoke at an IFRS advisory panel in London on Monday, February 20, 2012. He discussed the SEC's current thinking on adoption of IFRS and the role of the FASB in that system. According to the article, his comments were made "in terms that hinted that he and his staff were gravitating toward a middle-ground 'endorsement' proposal, under which IFRS would be incorporated into U.S. rules and U.S. rule makers would retain the authority to evaluate future global rules for U.S. use."
Question 1: Who establishes International Financial Reporting Standards (IFRS)?
Question 2: Summarize the status of use of IFRS from comments in this article, augmented by information on the web located at https://www.ifrs.org/Use+around+the+world/Use+around+the+world.htm.
Question 3: According to the article, why are "international authorities...pushing the [U.S. Securities and Exchange Commission] to move U.S. companies to use the global rules"? Why do accounting firms and large multinational corporations also support this view?
Question 4: What is principles-based standard setting? How is this different from the approach generally taken under U.S. Generally Accepted Accounting Principles (U.S. GAAP)?
Question 5: According to the article, as the U.S. moves to using IFRS, what will become the role of the Financial Accounting Standards Board (FASB)?