AICPA Sends SEC Recommendations

While multinational and domestic companies alike have been vocal in the debate over adoption of the International Financial Reporting Standards, the American Institute of Certified Public Accountants has also chimed in on the contentious issue.

AICPA has added its name to the list of endorsements, supporting the option for U.S. companies to report according to IFRS. However, the group does say that using IFRS should be optional, rather than a requirement.

In a letter to SEC Secretary Elizabeth Murphy, the group said moving would add consistency to “the treatment of U.S. companies and foreign private issuers that report under IFRS that does not exist today, and would facilitate the comparison of U.S. companies that elect IFRS with their non-U.S. competitors that use IFRS.”

Additionally, AICPA said investors, issuers and capital markets would all benefit from setting a comprehensive standard for financial reporting.

While the SEC had set an end-of-2011 deadline for making its decision, the CFA Institute has said in a letter that it would be better for the agency to take more time and create a thorough work plan.