SEC Releases IFRS Studies
A friend pointed me to an Accounting Today article that reports the release of SEC documents exploring IFRS. One of them compares IFRS and GAAP for most transactions (some active MOU projects are omitted). Another assesses how IFRS is being applied in practice. I have not had the chance to study these yet, but here is what Accounting Today had to say about the latter doc:
“The second document, “An Analysis of IFRS in Practice,” examines how a sampling of foreign companies have used IFRS in their filings with the SEC, and summarized areas that drew comments from the SEC’s Division of Corporate Finance as part of its disclosure review program. The SEC staff looked at accounting principles, presentation of financial statements, and accounting for assets, liabilities, shareholders’ equity, revenue, expenses, broad transactions, and certain industry-specific matters. The staff paid attention to matters such as transparency and clarity of disclosures, compliance with applicable accounting standards, and the comparability of financial statements.
“The SEC staff found that company financial statements generally appeared to comply with IFRS requirements, but not always, and it said the transparency and clarity of the financial statements could be enhanced.”
My guess is that these two documents will be useful to academics both as teaching tools and as quotable materials in some research papers. They may also motivate additional academic research questions.