The Financial Crisis Impact on Institutions and Accounting

8 Victoria Krivogorsky constituency in the US on adopting of global standards, in the same Final Staff Report, the SEC identifi ed that “investors do not believe that highquality standards should be compromised for the sake of uniformity.” In other words, SEC and FASB would grant their standard-setting authority to the IASB only when and if IFRS reach the high threshold established for them by the US. Moreover, the same Staff Report carries on to state that “further, investors noted that the FASB, in acting as an endorser, could serve an important role, ensuring that any standard incorporated into the US fi nancial reporting system is of suffi cient quality to maintain or improve on the fi nancial reporting system.” 16

With no clear plan to adopt IFRS in the US, the discussion about the use of international accounting standards in the US continues. At the AICPA National Conference on Current SEC and PCAOB Developments in December 2016, the Chief Accountant of the SEC’s Offi ce of the Chief Accountant signifi ed that while he does not anticipate the use of IFRS for domestic registrants in the near future, the FASB and IASB should carry on to collaborate to eliminate differences when in the best interest of the capital markets. In the same way, in a public statement issued in January 2017, the outgoing SEC Chair articulated support for the expansion of high-quality, globally accepted accounting standards, and recommended that the SEC support further efforts by the FASB and IASB to converge their accounting standards to enhance the quality and comparability of fi nancial reporting. 17

Among the main reasons for the lack of convergence, a political one can probably be listed at the top of the record. It seems that the US is disinclined to give up the GAAP standard-setting authority over domestic issuers to an international standard-setting body headquartered in London. Pronouncing (and lawfully so) that their primary goal is to protect US investors’ welfare, the SEC notes that IFRS lacks reliable application, allows too much latitude with judgment, and is undersized in many specifi c areas. US GAAP, on the other hand, has detailed and accepted guidance and established practice regarding industry accounting and reporting, and many particular transactions, as can be seen in the August 2015 US GAAP “Guidance on the Presentation of Costs Related to Revolving Lines of Credit.” The development of new guidance means that even in the relatively distant future when/if IFRS are fi nally adopted for the US issuers, international standards still will be reviewed and possibly customized to meet the specifi c needs of an American investor. It is not surprising that the Final Staff Report mentioned above did not provide any conclusions or recommendations to the SEC for the actions concerning IFRS in the US.

Most recently, the SEC’s Strategic Plan for Fiscal Years 2014–2018 stressed again that

the SEC will continue to promote the establishment of high-quality accounting standards to meet the needs of investors. Due to the