In late 2008, the Securities Exchange Commission (SEC) in the United States published its roadmap to IFRS that would look at adopting IFRS. Read the article entitled “IFRS: Dead in the USA,” by Lawrence Richter Quinn from CA Magazine, April 2010, which is available at www.camagazine.com.
Instructions
(a) The article suggests that the SEC has been slow in providing guidance as to whether or not IFRS will be adopted in the United States. Outlined in the article are examples of how this indecision has cost companies. Explain how these costs might be incurred and the examples provided.
(b) What are the arguments for and against the SEC requiring companies to adopt IFRS?
(c) Research what recent announcements have been made by the SEC on this topic.