The Securities and Exchange Commission is shutting down any further speculation on when it will make some move toward a decision on International Financial Reporting Standards.

The long-awaited final staff report on the IFRS work plan, whenever it is published, will not contain a recommendation to the commission on whether, how, or when the United States should transition to the international rule book, says SEC spokesman John Nester. “Staff have been working on a report and separately developing a recommendation,” he says. “The report is nearing completion but staff have not established a timetable for completing a recommendation.”

The clock on an SEC decision on IFRS began ticking in February 2010 when the SEC published its statement in support of global accounting standards and convergence. The SEC said it directed its staff to develop and execute a work plan “to enhance both understanding of the Commission's purpose and public transparency in this area.” The SEC said the work plan, along with progress by the Financial Accounting Standards Board and the International Accounting Standards Board to achieve convergence on some key accounting standards would be key to any decision it might reach on whether, when, and how the United States might adopt IFRS. The commission said progress on those two fronts would position the commission to make a determination in 2011.

In the months to follow, SEC staff produced papers on a possible method of incorporating IFRS into U.S. financial reporting, the key differences between U.S. and international accounting rules, and how IFRS is applied in countries where it is required. The staff's final report to the commission is still outstanding. On the convergence front, FASB and IASB hit delays in their key projects -- especially on new standards for financial instruments, revenue recognition, and leasing -- delaying their original target day of mid-2011 to complete their work.

As 2011 drew to an end and SEC staff still toiled on a final report to the commission, SEC Chief Accountant James Kroeker said the staff would need “a few additional months” to finalize its work. He also said the staff was working “at the same time” on a recommendation for a possible method of incorporation or adoption for the commission to consider. In late May, SEC staff members began saying publicly that the final report would be presented to the commission “in a matter of weeks.”

Now the SEC is making it clear that the staff's long-awaited final report will not contain any recommendation for commission action. The staff will, however, make a recommendation to the commission at some later, undetermined date, Nester says, and the SEC will await that recommendation before it makes any kind of decision. That means there's no timetable whatsoever on a Commission decision on IFRS, says Nester. Kroeker has announced his plans to leave his position at the SEC in July to return to the private sector.