SEC Approves "Potential" IFRS Roadmap: D-Day Six Years Hence - 8/28/08

August 28, 2008

SEC Approves "Potential" IFRS Roadmap: D-Day Six Years Hence

Yesterday, the SEC adopted a proposed roadmap for the potential
transition by US companies from US GAAP to IFRS at an open Commission
meeting. The roadmap provides that the voluntary transition to IFRS for
a limited category of US companies could start with reports filed for
fiscal periods ending on - or after - December 15, 2009. To be allowed
to do that, a company would have to be among the 20 largest companies
within its industry in the world - and a large number of its
competitors would have to already be using IFRS. The SEC estimates that
about 110 companies would qualify for this voluntary movement.

The roapmap entails possibly mandating IFRS for large US companies
for their 2014 financial statements, with somewhat smaller ones
required to make the move in 2015 and then the smallest companies
forced to use IFRS in 2016. The final decision on whether to implement
this timetable would be made in 2011.

Here are the related SEC documents:

- Press Release

- Opening Remarks by Chief Accountant

- Videotaped Remarks from Chair Chris Cox

- Speech from Commissioner Elisse Walter