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US SEC mulls 2014 for international accounting rules

WASHINGTON, Aug 27 (Reuters) - U.S. companies could be required to use international accounting standards by 2014 under a tentative timeline proposed by the U.S. Securities and Exchange Commission on Wednesday.

The SEC voted unanimously to establish a path that could eventually force U.S. companies to use the international accounting rules instead of U.S. Generally Accepted Accounting Principles.

The proposal, which will be open for a 60-day comment period, brings the United States a step closer to the European Union and dozens of other countries that are already using international financial reporting standards (IFRS).

In order to ensure that the international rules meet the SEC's standards, the agency set 2011 as a date to evaluate critical milestones and decide on mandating IFRS. (Reporting by Rachelle Younglai; Editing by Brian Moss)

Article can be found here:
http://www.reuters.com/article/managementIssues/idUSWAT00995120080827

02/09/2008

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All SEC financial data to be interactive within two years

WASHINGTON (AP) — Investors will be able to access financial disclosures from all U.S. public companies and mutual funds in an interactive format within two years, as regulators replace a 1980s-vintage, text-based reporting system with an Internet-based platform.

The new system, called Interactive Data Electronic Applications, or IDEA, was introduced at a news conference Tuesday by Securities and Exchange Commission Chairman Christopher Cox.

IDEA is "a fundamental change in the way the SEC manages, collects and distributes information" that make it more accessible and reliable for investors, Cox said.

With the change, all the data in companies' SEC filings will be searchable on the Internet. Investors will be able to immediately collate information from thousands of companies, creating reports and analyses "on the fly, in any way they choose," the SEC said.

Around 90 companies have voluntarily been filing their disclosures to the SEC using the so-called XBRL, or extensible business reporting language, that provides advanced search capabilities with data-tagging. All public companies and mutual funds will be required to do so through the IDEA system within two years.

Edgar, the SEC's online reporting system since the 1980s, stores paper corporate filings in electronic form.

Rather than treating financial information as a block of text — as in a standard Internet page or a printed document — XBRL provides a unique identifying tag for each individual item of data, such as company net profit. That enables users to extract specific information more easily from SEC filings, run calculations and aggregate data without having to open and review multiple filings.

Companies' interactive data filings through IDEA are expected to begin being available late this year during the transition to the new system, the SEC said. Those who use the current reporting system will be able to continue doing so indefinitely.

Copyright 2008 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.

Full article can be found here:
http://www.usatoday.com/money/companies/regulation/2008-08-19-sec-interactive-data_N.htm

25/08/2008

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SEC may back international accounting standards

Fri Aug 22, 2008 2:28pm EDT

WASHINGTON (Reuters) - U.S. companies would be able to file financial results using international accounting standards according to a timetable U.S. securities regulators will propose next week.

The U.S. Securities and Exchange Commission will meet on Wednesday to review a long-anticipated plan to move toward International Financial Reporting Standards (IFRS) and away from U.S. Generally Accepted Accounting Principles (GAAP).

About 110 countries use or plan to use the international accounting standards which are considered more flexible than GAAP.

The SEC in November voted to allow foreign companies to submit their financials in IFRS instead of having to conform to GAAP, a time-consuming and costly process.

The SEC is considering a timetable, or "roadmap" in its terminology, that could converge the two systems and eventually allow some U.S. companies to file in IFRS.

U.S. Treasury Secretary Henry Paulson and Federal Reserve Chairman Ben Bernanke have applauded the moves toward a common set of international standards, which they said could attract more foreign companies to the United States.

SEC Chairman Christopher Cox said earlier this week he expects a final rule this autumn.

"Our focus is on laying out a roadmap," Cox told reporters after a news conference on Tuesday. "It will be an important milestone, but it will be one step in what will undoubtedly be a long journey."

The proposal will be subjected to a comment period, an unusual move for the SEC, which typically adopts timetables without extensive feedback. Cox said the comment period is needed "given the significance of the changes under consideration."

Critics have cautioned U.S. regulators from moving too fast to IFRS, saying it could create lax standards and that there could be a steep learning curve for the creation and interpretation of IFRS financial statements in the United States.

(Reporting by Karey Wutkowski; Editing by Daniel Trotta)

Article can be found here:

http://www.reuters.com/article/ousivMolt/idUSN2229872320080822?sp=true

25/08/2008

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