Mary Jo White, the outgoing chief of the SEC, who has been pushing to reduce the differences between US GAAP and the IFRS, is urging the new administration to continue efforts to further help companies that have subsidies abroad.
The FASB (Financial Accounting Standards Board) has been working on improvement in the standard of US GAAP and on further building a good relationship with the ISAB (International Security Advisory Board) by providing inputs to ISAB projects and actively participating in programs conducted by the IFRS. The Accounting Standards Advisory Forum (ASAF) has also pursued efforts to minimize the difference between the standards. The approach by the SEC in most cases has been to improve GAAP by seeking global advice and incorporating learning from different countries. Will Jay Clinton, the new chief of the SEC, continue in the same direction?
With the new government’s focus on the Dodd Frank Act “SEC whistleblowers program”, we will have to wait to understand if efforts will continue to converge both accounting standards.