Julie Erhardt, the SEC's Deputy Chief Accountant, spoke recently in Frankfurt at the International Financial Reporting Standards conference, "Implications of Convergence." In her speech, Erhardt noted that "convergence is about providing the capital markets with one set of high quality global accounting standards." She noted that the process of achieving convergence of standards and then implementing those standards will be a long and complicated process.
Erhardt made four main points with respect to the convergence of accounting standards:
1. Investors and creditors can use financial statement prepared under the IFRS;
2. Many countries are moving toward the IFRS, but they should avoid the urge to "nip and tuck" at the IFRS;
3. Many people are applying and auditing the application of IFRS; and
4. Many regulators are enforcing application of IFRS, and they have different jurisidictional mandates and powers in doing so.