In response to an Aug. 27 announcement, industry representatives are expressing support for the concept of a 'roadmap' for creating a single set of international accounting standards to be released by the U.S. Securities and Exchange Commission.
However, they say they will wait for details of the 'roadmap' before offering detailed comment.
In a statement, the SEC said it had voted to publish for public comment a roadmap that could lead to the use of International Financial Reporting Standards by companies beginning in 2014. The SEC said it would make a final decision on the matter by 2011.
SEC Chairman Christopher Cox noted the concept offers the possibility for "a true lingua franca for accounting."
Over 100 countries worldwide require IFRS and 85 of those countries require it for their domestic companies, he added.
In a statement, the American Council of Life Insurers, Washington, said it looks forward to seeing the actual details of the 'roadmap.' The statement noted that statutory accounting, which ensures solvency for insurance companies, would not be directly affected by the SEC's proposal and that the proposal establishing International Financial Reporting Standards would affect GAAP accounting. Further, according to the ACLI, the project is still in its early stages, so the impact on the industry is difficult to determine.
