Donohue Says SEC is Considering IFRS for Fund Industry
In a recent speech, Andrew Donohue, Director of the SEC’s Division of Investment Management, urged the fund industry to participate in the coming harmonization of IFRS and GAAP accounting standards. Mr. Donohue said that the SEC supports harmonization generally including its application to the fund industry. He noted the fund industry’s historical objections to the IFRS standards and indicated that the Division will evaluate IFRS application to the fund industry.
OUR TAKE: We are not accountants or auditors, so we have no opinion on which accounting standards should apply. However, a move to an entirely new auditing regime would be significant.