The U.S. Securities and Exchange Commission has moved to allow some large American companies to begin using international accounting standards as early as next year, and to require all U.S. companies to do so by 2016.
The SEC voted unanimously on Wednesday to propose a “road map” for conversion, with eventual adoption depending in part on revised provisions for financing the group that writes the international standards.
The adoption of international accounting standards by the United States would move the world toward one set of standards, which should make it easier for investors to compare companies operating in differing regions — and make it easier for firms to raise capital in whatever market seems most attractive.
“The proposed road map is cautious and careful,” said the chairman of the SEC, Christopher Cox.
Under the proposal, a small group of large companies, which the SEC estimated at about 110 firms, would be allowed to use the international rules in financial statements issued after Dec. 15, 2009. This means that companies on a calendar-year basis could use the international rules for their 2009 annual reports.
To be allowed to do that, the company would have to be among the 20 largest companies in its industry around the world, and a large number of its competitors would have to already be using the international standards.
The commission said it would consider requiring large American companies to move to the international standards for their 2014 financial statements, with smaller ones required to make the move in 2015 and the smallest — but largest number — allowed to delay until 2016. Under the plan, a final decision on those companies would be made in 2011.
That decision would be made by an SEC whose chairman would have been appointed by a new president. But by allowing some U.S. companies to stop using…