Roadmaps Delayed | AccountingWEB

Roadmaps Delayed

On Feb. 3, the SEC issued a release extending the comment period on its proposed IFRS Roadmap. Originally published in the Federal Register on Nov. 21, 2008 with a comment deadline of Feb. 19, 2009, the SEC has extended the comment period by an additional 60 days, ending on Monday, April 20, 2009.

FEI’s comment letter asking for an extension of the comment period is among the letters cited by name in footnote 1 of the SEC’s release granting the extension, in addition to comment letters sent by Northrop Grumman Corporation, Raytheon Company, Honeywell, Aerospace Industries Association, and United Technologies Corporation.

Note that the SEC has simply delayed the ultimate comment deadline on this proposal, it has not yet made a determination whether to delay the year at which it would plan to reach a decision on a potential move of U.S. public companies from U.S. GAAP to IFRS, nor has SEC determined yet whether it would delay the proposed effective date at which companies would have to switch over, if indeed the SEC were to decide to switch companies over. Hat tip to Securities Mosaic for publicising this development in a regulation alert on Feb. 3.

In other news, top SEC officials, including the Director of Enforcement and Director of Trading and Markets, are set to testify Wednesday at the second in a series of House Financial Services Committee hearings on Assessing the Madoff Ponzi Scheme and Regulatory Failures.

Leading off the hearing will be the long-awaited testimony of Harry Markopolos, whose lengthy memos to the SEC (such as Markopolos' 19 page submission to the SEC dated Nov. 7, 2005) essentially drew a roadmap of how Bernard Madoff was allegedly, according to Markopolos, committing fraud – specifically, in Markopolos’ view - the world’s largest Ponzi scheme. The essense of the question being addresed at Congressional hearings like the one on Wednesday (and in the SEC's own internal report, being led by its Inspector General, H. David Kotz) is to learn why the SEC appears to have failed to follow the roadmap it was handed by Markopolos.

Props to Footnoted.org for highlighting tonight the upcoming hearing, and providing a link to Markopolos’ 65 page testimony (via Fox Bus News), which walks through his interactions with the SEC and other key parties over the years.

Find some additional IFRS resources and read more about the Madoff hearing here.