FEI Releases Statement on the SEC’s Final Staff Report on IFRS

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FEI Releases Statement on the SEC’s Final Staff Report on IFRS

7/16/2012

Morristown, N.J. – Financial Executives International, the premier organization for senior-level financial executives, issued the following statement by FEI President and CEO Marie N. Hollein, regarding the July 13, 2012 release of the U.S. Securities and Exchange Commission’s (SEC) final staff report on the incorporation of International Financial Reporting Standards (IFRS) in the U.S.:

“FEI commends the SEC staff for completing its Final Staff Report on the Commission’s 2010 Work Plan for the Consideration of Incorporating International Financial Reporting Standards into the Financial Reporting System for U.S. Issuers.

“The report appears to be thoughtful and detailed, indicating the SEC staff paid attention to the vast amount of input received from comment letters and roundtables.

“FEI continues to support a move to global accounting standards. However, we recognize there may be various paths to achieve that goal. Even among preparers, there are a range of views about the costs and benefits of possible routes to the incorporation of IFRS in the U.S. financial reporting system, among and within large and small public and private companies, and not-for-profit entities.

We believe the closing paragraph of our May 25 letter to the U.S. Treasury Department, is as relevant today, upon release of the SEC staff’s final report, as it was then:

As an organization, FEI strongly supports the [Financial Accounting Standards Board’s and International Accounting Standards Board’s] efforts to work together to achieve convergence in accounting and financial reporting standards. Finding a way forward on these important projects in a manner that best meets the needs of all financial reporting stakeholders will take time and should not be subject to an artificial deadline. Similarly, we do not feel the SEC should feel compelled to act on the matter of whether, and if so how, to incorporate IFRS standards into US GAAP, until such time as the Commissioners feel they have conducted sufficient outreach and study to make a well-informed decision that will stand the test of time.

FEI would be pleased to assist the SEC and the FASB and IASB in any way to assist in the consideration of moving toward the goal of global accounting standards.”