The Securities and Exchange Commission has hit back at accounting regulators around the world who have tailored IFRS to suit their local markets.
Speaking at a corporate governance conference in Washington yesterday, SEC chairman Christopher Cox said that regulators in different countries should avoid revising International Financial Reporting Standards to meet the needs of local markets.
'Regulators must beware the impulse to develop nationally tailored versions of IFRS, and we must cooperate with one another in implementing a set of standards that is faithfully and consistently applied,' said Cox.
Concerns have especially increased recently with a push from the European Union to have the SEC accept its version of IFRS, WebCPA.com reported.
Cox, however, cautioned against different countries wanting to preserve differences in their accounting standards: 'In some cases, convergence and harmonisation are the best approach. In other cases, an intentionally different national approach is best; and sometimes simply offering investors a choice after full disclosure is the way to go.'
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