WASHINGTON — The Securities and Exchange Commission this week will set a time frame for letting American companies drop U.S. accounting rules and start issuing financial statements using international provisions.
SEC commissioners will meet Wed nesday to vote on a proposed “roadmap” for U.S. companies switching to overseas accounting standards, the agency said Friday in a statement on its website. Under the proposal, the SEC may allow a “limited number” of companies to adopt global rules early, the regulator said.
The SEC needs to mesh its rules with global regulators in response to the rapid growth of overseas markets and increasing demand for cross-border investing, Chairman Christopher Cox has said.
Critics such as U.S. Sen. Jack Reed, D-R.I., who heads a subcommittee overseeing the agency, have questioned whether the SEC is moving too fast and risks outsourcing its oversight to less aggressive regulators.
Commissioners at this week’s meeting will vote on whether to seek public comment on the accounting proposal. The “roadmap” would require a second vote to become binding.
The SEC last year scrapped a requirement that overseas companies align financial statements with U.S. accounting rules.
At least one study has found companies show higher profits when they follow international standards.
