The U.S. Securities and Exchange Commission (SEC) recently issued its proposed roadmap for mandatory conversion from U.S. Generally Accepted Accounting Principles (US GAAP) to International Financial Reporting Standards (IFRS) for financial reporting of all SEC registrants.

"While IFRS will be required for SEC companies in the near future, we believe there will be a ripple effect that will carry all the way down to smaller private companies and local banks," said Jim Tencza, an officer with Cotton + Allen and member of the RSM McGladrey Network IFRS Steering Committee.  Currently, more than 100 foreign nations are using IFRS or a close representation, and several others, including Canada, will be converting to IFRS in the next few years.  

For companies with foreign ownership and for any company that does business overseas, IFRS convergence may be coming sooner rather than later. Tencza further added, "It is now a matter of 'when' and not 'if'.  Convergence to IFRS is coming and if you don't begin to educate yourself now, you and your company may be caught off-guard."  

As a member of the RSM McGladrey Network, Cotton + Allen is uniquely positioned to help answer your questions and provide education or assistance with IFRS convergence.  For more information, please contact Tencza at 502.566.1071 or access this link to the RSM McGladrey IFRS Resource Center.