The purpose of the SEC report compiled by the SEC staff is to consider the application of the International Financial Reporting System and its standards in the United States. The United States currently uses US GAAP accounting standards. The difference between US GAAP and IFRS accounting standards: US GAAP standards are rules-based, while IFRS standards are principles-based. This means that US GAAP standards provide clarity in application and clearly defined IFRS standards provide users with the opportunity 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 Guidance One point that struck me was the difference in industry guidance. 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 their use in different sectors. While IFRS standards give organizations the ability to compare their transactions to those of other organizations in other industries, they lack the guidance that investors and preparers need. “Several commenters on the May 2011 Staff Paper expressed concerns about how industry-specific guidance would be affected by the incorporation of IFRS. These commenters indicated that the included guidance was beneficial to investors and preparers.” (Work Plan for, 2012) Some may argue that principles-based standards are more flexible and offer management higher levels of flexibility and leave auditors with too little guidance (McEnroe & Sullivan, 2012). The f...... half of the document......ifrs-reporting/assets/ifrs_investment_management_pov.pdfMcEnroe, J.E., & Sullivan, M. (2012). Accountants' and CFOs' perceptions of principles-based versus rules-based accounting standards. CPA Journal,82(3), 32-37Learn more about mining. (n.d.). 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 examine the integration of international financial reporting standards into the financial reporting system for U.S. issuers. Retrieved from website: http://www.sec.gov/spotlight/globalaccountingstandards/ifrs-work-plan-final-report.pdfWhich is better: principles or rules?. (2011, April 5). Retrieved from http://ifrsusa.wordpress.com/2011/04/05/wich-is-better-–-principles-or-rules/