We have a unique opportunity to (hopefully) have some impact on the future of standard setting. The IFRS Foundation oversees the International Accounting Standards Board. The Foundation has issued a call for comments on its strategy review. Click here to see comment letters received to date and instructions for submitting a comment letter.

This provides an important opportunity to offer your perspective on factors to consider in structuring an organization charged with world-wide standard setting. What would need to change in order for you to be comfortable with a possible SEC decision to require/allow U.S. companies to file financial statements using IFRS without a reconciliation to any other form of GAAP?

The document poses some interesting questions (paraphrased): (1) What sound be the objective of financial reporting? (2) Should standard setters take into consideration the potential effects of new standards on economic behavior? What is the role of neutrality? (3) To whom should the organization be accountable? For what should the organization be accountable? What does it mean for the organization to be independent? (4) What is the role of national standard setting bodies in a world where an international body (i.e., the IASB) determines GAAP? (5) What should be the nature of due process? (6) How should the organization go about providing follow-on guidance for new standards? (7) How should the organization be funded?

The comment deadline is February 24, 2011. This is a unique opportunity for impact by students, professors, and AAA/FARS committees charged with commenting on financial reporting standards and the standard setting process.