03 February 2014

SEC plans to consider whether global standards are achievable

The SEC has published a draft Strategic Plan for the 2014-2018 period. According to one initiative described, the SEC plans to consider whether a single set of high-quality global accounting standards is achievable.

An initiative described on page 8 of the 39-page document says the SEC will continue to promote the establishment of high-quality accounting standards by independent standard-setters. In its oversight of FASB, the SEC plans to strengthen the board’s independence and maintain its focus on the needs of investors in financial reporting, according to the draft.

The agency also plans to promote higher-quality financial reporting worldwide and will consider whether a single set of global standards is achievable, the document says. The document does not specifically mention IFRS.

After years of study, the SEC has yet to vote on whether to allow or mandate adoption of IFRS for US public companies. In December, SEC Chief Accountant Paul Beswick said rule-making duties related to federal legislation have prevented the SEC from devoting time to deciding on the future of IFRS in the United States.

The draft strategic plan also said the SEC will continue its work to foster high-quality audits through its oversight of the PCAOB and its regulation of auditors through the PCAOB’s inspection and disciplinary programmes.

Four overarching goals are described in the draft to guide the commission in its mission to protect investors; maintain fair, orderly, and efficient markets; and facilitate capital formation.

The draft would establish the following strategic goals for the SEC:

• Establishing and maintaining an effective regulatory environment.
• Fostering and enforcing compliance with the federal securities laws.
• Facilitating access to the information investors need to make informed investment decisions.
• Enhancing the SEC’s performance through effective alignment and management of human, information, and financial capital.

Draft SEC-Strategic Plan for 2014-2018

Full article © Journal of Accountancy

Press release © Deloitte