The Securities and Exchange Commission has finally posted for comment its long-awaited roadmap for the potential use of International Financial Reporting Standards by U.S. issuers for their filings with the Commission.

The 165-page roadmap sets forth seven milestones that, if achieved, could lead to the required use of IFRS as issued by the International Accounting Standards Board by U.S. issuers in 2014 if the Commission believes it to be in the public interest and for the protection of investors. The commission voted to publish the roadmap back in August.

The milestones relate to:
• improvements in accounting standards;
• the accountability and funding of the IASC Foundation;
• the improvement in the ability to use interactive data for IFRS reporting;
• education and training relating to IFRS;
• limited early use of IFRS where this would enhance comparability for U.S. investors;
• the anticipated timing of future rulemaking by the Commission; and
• the implementation of the mandatory use of IFRS by U.S. issuers.

Under the proposal, out for a 90-day comment period once it’s published in the Federal Register, the Commission would determine in 2011 whether to proceed with rulemaking to require that U.S. issuers use IFRS beginning in 2014 if it is in the public interest and for the protection of investors to do so.

As a step along this roadmap, the release also describes proposed amendments to permit a limited number of U.S. issuers that are among the largest companies worldwide within their industry and whose industries use IFRS as the basis of financial reporting more than any other set of standards to elect to use IFRS beginning with filings for fiscal years ending on or after Dec. 15, 2009.

Compliance Week will provide detailed coverage of the SEC’s proposal in an upcoming issue.