The Security and Exchange Commission -- SEC's non-requirement of foreign firms reporting under IFRS to deposit reconciliation to the U.S. GAAP is also facilitating the process. The SEC concurrently is also actively examining the possibility whether to allow, or maybe sooner or later need, some or all companies registered in the U.S. To ready filings using the IFRS thereby reconciling to the U.S. GAAP. It is a fact that earnings under U.S. GAAP and IFRS are comparable across earnings attributes leaving aside relevance. Besides, the variation among U.S. GAAP and IFRS reconciled earnings is valued incrementally relevant to U.S. GAAP or IFRS earnings. It is also found that U.S. GAAP demonstrate increased relative information content compared to IFRS, indicating that suspending reconciliation of IFRS to U.S. GAAP might outcome in less important financial statements for valuation of equity. The Way Forward:

SEC presently examining the options of allowing both U.S. And non-U.S. companies cross-listing in the U.S. To file financial statements based on IFRS, the primary reason being that accounting amounts based on the IFRS might be similar in quality to those based on the U.S. GAAP. Increased use of IFRS across the world and the restructuring of the International Accounting Standards Committee -- IASC into the International Accounting Standards Board appear to be the contributing factors. In future, these two events could result in high quality IFRS compliant accounting as this will outcome in better quality standards and steady interpretation, application, enforcement standards. Past research reveals that accounting amounts of non-U.S. companies applying IFRS and U.S. companies applying U.S. GAAP usually are qualitatively better compared to non-U.S. companies applying domestic standards. Nevertheless, the comparative quality of U.S. And IFRS accounting amounts remains an open issue similar to the comparative quality of IFRS accounting amounts and U.S. GAAP accounting amounts of companies cross-listing in the U.S.

References

Barth, Mary E. "Accounting Quality: International Accounting Standards and U.S. GAAP." Working Paper, School of Accountancy, Singapore Management University, August 2006.

Bruce, Bowden a. "GAAP and IFRS: The Convergence and Transition of International Accounting Standards" New Jersey Lawyer 7, no. 1 (2010): 38-40.

Fay, Hansen. "Get ready for New Global Accounting Standards." Business Finance Magazine, January 1, 2004.

And Linthicum, Cheryl L. "Could IFRS replace U.S. GAAP: A comparison of earnings attributes and informativeness in the U.S. market" No 28, Working papers series from College of Business, University of Texas at San Antonio, June 2, 2011.
Street, Donna L. "IFRS in the U.S.: It may come sooner than you think" Journal of International Accounting Research 6, no. 1 (2007): xi-xvii.

Tarca, Ann. "International Convergence of Accounting Practices: Choosing between IAS and U.S. GAAP" Journal of International Financial Management and Accounting 15, no. 1 (2004): 60-91.

Tarca, Ann. "International Convergence of Accounting Practices: Choosing between IAS and U.S. GAAP" Journal of International Financial Management and Accounting 15, no. 1 (2004): 73.

Tarca, Ann. "International Convergence of Accounting Practices: Choosing between IAS and U.S. GAAP," 73.

Bruce, Bowden a. "GAAP and IFRS: The Convergence and Transition of International Accounting Standards" New Jersey Lawyer 7, no. 1 (2010): 39.

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Bruce, 39.

Bruce, 39.

Bruce, Bowden a. "GAAP and IFRS: The Convergence and Transition of International Accounting Standards" 40.

Bruce, 40.

Bruce, Bowden a. "GAAP and IFRS: The Convergence and Transition of International Accounting Standards," 40.

Fay, Hansen. "Get ready for New Global Accounting Standards." Business Finance Magazine, January 1, 2004.

Street, Donna L. "IFRS in the U.S.: It may come sooner than you think" Journal of International Accounting Research 6, no. 1 (2007): xii.

Gordon, Elizabeth a; Jorgensen, Bjorn N. And Linthicum, Cheryl L. "Could IFRS replace U.S. GAAP: A comparison of earnings attributes and informativeness in the U.S. market" No 28, Working papers series from College of Business, University of Texas at San Antonio, June 2, 2011 (College of Business: University of Texas, 2011): 12.

Barth, Mary E. "Accounting Quality: International Accounting Standards and U.S. GAAP." Working Paper, School of Accountancy, Singapore Management University, August 2006 (School of Accountancy, Singapore Management University, 2006): 7.