Academic

The SEC announced today that it might mandate that American public companies prepare their returns pursuant to the world's - but not the US's GAAP's - accounting principles.  But not until loads of comment, a reassessment in 2011, and a target date of 2014.  It's pretty global when other countries are defining the way that American companies will have to prepare their books.  But, as IFRS and GAAP expert Larry Cunningham reminded me, this is a careful approach to harmonization - and a very preliminary first step.  We will wait eagerly what will appear in the SEC's notice actually detailing their approach, not to mention the public comment that will follow, let alone the milestones that must be met before harmonization is required.

Chairman Cox:

"The increasing worldwide acceptance of financial reporting using IFRS, and U.S. investors' increasing ownership of securities issued by foreign companies that report financial information using IFRS, have led the Commission to propose this cautious and careful plan. Clearly setting out the SEC's direction well in advance, as well as the conditions that must be met, will help fulfill our mission of protecting investors and facilitating capital formation."