As anyone studying for the FAR exam knows, IFRS stands for International Financial Reporting Standards and CPA Candidates are expected to have a broad base of IFRS knowledge for the CPA Exam. Well, that might change.
Last week at a college conference the U.S. Securities and Exchange Commission's chief accountant, James Schnurr, stated the following:
- There is virtually no support to have the SEC mandate IFRS for all registrants;
- The staff has found little support for the SEC to provide an option allowing domestic companies to prepare their financial statements under IFRS; and
- There is continued support for the objective of a single set of high-quality, globally accepted accounting standards.
While the SEC has not yet released an official statement on its position regarding IFRS, these public remarks from Mr. Schnurr are a good indication of what we may hear soon from the SEC.
It appears that, based on these remarks, entities will not be required to apply IFRS and will simply be allowed to provide supplementary information under IFRS if they elect to do so.
This makes it likely that the AICPA will, at a minimum, reduce its coverage of IFRS on the CPA exam in the future. We will keep you updated!