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SEC Publishes International Standards Draft

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The SEC is looking into whether the U.S. companies that file reports with it should be required to use the International Financial Reporting Standards rather than the U.S. Generally Accepted Accounting Principles.

The road map sets out a plan that could lead to the United States requiring U.S. issuers to shift to the IFRS approach as early as 2014.

The SEC notes in the draft that the international standards provide only limited guidance on how to handle insurance contracts.

A company that converted from GAAP to IFRS or vice versa would have to begin using the new standard in a Form 10-K annual report, not in a filing such as a Form 10-Q quarterly report.