Proceedings

milestones that, if achieved, may lead to mandatory transition to IFRS starting
December 2014; certain entities are allowed to adopt IFRS in advance.
SEC and IASC
joint
conference
‘80s
FASB becomes
an observer at
IASC meetings
2002
MoU1
Figure 1. Timeline of IFRS adoption in the USA
MoU2
2006
Launched
debate over the
use of IFRS by
US issuers
2007
!!! SEC drops
reconciliation
requirements
In addition, in February 2010, the SEC published a Statement in Support of
Convergence and Global Accounting Standards aiming at facilitating the development
and execution of a “Work Plan” that will enable SEC to reach a decision regarding the
use of IFRSs by US issuers by 2015 /2016.
2.2 IFRS adoption in the United Kingdom
The financial reporting principles of the United Kingdom influenced in a great extend
the development of the international accounting standards and the financial reporting
within the European Economic Community and, implicitly, the European Directives.
In fact, the euro-harmonization process coincided with UK’s joining the EEC.
Meanwhile, at London, IASC was being founded, with UK being one of the nine
accounting organizations supporting the initiative.
As member of the EEC, UK was part of the European Union’s decision to sign the
1995 protocol, EU offered guidance to the Member States in adopting IAS, whereas
these standards were compatible with the European Directives. “The Directives do
not, however, provide answers to all the problems facing the preparers and users of
accounts and accounting standard setters in the 1990s. Some issues are not addressed
at all in the Directives”.
Also, in 2000, Commission announced the plan to require IAS for group accounts of
listed companies by 2005. A year later, the Commission adopted a fair value directive,
which requires/allows fair value measurement of certain financial instruments.
Financial reporting standards in the UK are set by the Accounting Standard Board
(ASB) of the Financial Reporting Council (FRC). Since the end of 2000 and
beginning of 2001, ASB addressed the issue of convergence between the UK GAAP
and IAS. The publication of The Convergence Handbook was expected to help the
ASB to identify and prioritize the areas where national standards should be changed.
Moreover, on 15 May 2002, the Accounting Standards Board (ASB) published seven
Financial Reporting Exposure Drafts (FREDs) as part of the first stage of a three
phase programme to align UK GAAP with IFRS.
~ 947 ~
SEC
proposes
IFRS
roadmap
2008
Update
MoU2
Workplan
regarding
the decision
over the use
of IFRS by
US issuers
2010
???
2015/2016
Prospective
mandatory
use of IFRS
by US
issuers