The purpose of the SEC report compiled by the SEC staff is to examine the application of the International Financial Reporting System and its standards to the States -United. Currently, the United States uses US GAAP accounting standards. The difference between US GAAP and IFRS accounting standards: US GAAP is rules-based, while IFRS is principles-based. This means that US GAAP standards clarify their application and clearly defined IFRS standards allow users to interpret the principles and determine the best way to account for a given transaction (Which is better, 2011). The following is a summary of key points from the SEC report. Industry Directions One point that stood out to me was the difference in industry directions. US GAAP standards have been adapted to the needs of the business, reporting and regulatory environment, providing standards for different industries (Work Plan for, 2012). IFRS standards, being principles-based, allow for use in different sectors. Although IFRS gives organizations the ability to compare their transactions with those of other organizations in other industries, they lack the guidance that investors and preparers need. “Several speakers in the May 2011 document expressed concerns about the impact of IFRS integration on sector-specific guidance. These commenters indicated that the guidance included has been beneficial to investors and preparers. (2012 Work Plan) Some might argue that principles-based standards are looser and give management higher levels of flexibility and leave auditors with too little guidance (McEnroe and Sullivan, 2012). The first...... middle of paper ......ifrs-reporting/assets/ifrs_investment_management_pov.pdfMcEnroe, JE, & Sullivan, M. (2012). CPA and CFO perceptions of principles-based versus rules-based accounting standards. CPA Journal,82(3), 32-37Learn more about extractive activities. (nd). Retrieved from http://www.ifrs.org/Current-Projects/IASB-Projects/Extractive-Activities/Pages/More-on-extractive-activities.aspxU.S. Securities and Exchange Commission, Office of the Chief Accountant. (2012). Work plan to consider the integration of international financial reporting standards into the financial reporting system of U.S. issuers. Retrieved from website: http://www.sec.gov/spotlight/globalaccountingstandards/ifrs-work-plan-final-report.pdfWhat is the best principle or rule?. (2011, April 5). Retrieved from http://ifrsusa.wordpress.com/2011/04/05/which-is-better-–-principles-or-rules/