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Schapiro Says SEC Will Discuss Transition To IFRS This Fall

By Sarah N. Lynch, Of DOW JONES NEWSWIRES

WASHINGTON -(Dow Jones)- Securities and Exchange Commission Chairman Mary Schapiro said Friday that this fall she expects the agency to address its " expectations" for the potential future adoption of a set of global accounting standards.

The SEC last year published a roadmap laying out a proposal for how U.S. companies should shift to using international financial reporting standards, or IFRS, starting in 2014. The plan aims to create a uniform accounting standard to help investors compare financial statements between U.S. and foreign companies.

Earlier this year, the SEC sought additional comments on its proposal, but discussions surrounding the roadmap have generally fallen out of the spotlight after the financial crisis and the Bernard Madoff scandal took center stage.

Schapiro signaled Friday the issue of switching from using U.S. generally accepted accounting principles to a global standard, however, is still very much on her agenda.

"It would be ideal if we can have a single set of high-quality accounting standards that worked globally. The reason for that is it would allow for comparability for very large companies in particular and give investors the ability to make comparisons around the world," she said.

"I expect we will speak a little later this fall about what our expectations are with respect to IFRS," she added.

Schapiro made her comments during a speech at Georgetown University's McDonough School of Business. Her remarks focused on how the financial crisis has demonstrated the need for much more disclosure to investors.

In her speech, she laid out the various initiatives the SEC has taken to provide investors with more information, on subjects ranging from ratings agencies and short-selling to risk-taking and flash orders.

But she acknowledged that in some instances, such as dealing with hedge funds, it can be hard to strike a balance between informing investors without revealing too much about trading strategies.

Speaking about the proposed legislation under consideration by Congress right now to require hedge fund advisers to register with the SEC, Schapiro predicted that the final regulation will likely result in "fairly detailed reporting to regulators and some level of public reporting to investors."

But, she noted, "there are still issues to be resolved."

-By Sarah N. Lynch, Dow Jones Newswires; 202-862-6634; sarah.lynch@ dowjones.com

  (END) Dow Jones Newswires
  09-18-091521ET
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