The push by the Securities and Exchange Commission toward acceptance of a single, global accounting standard has raised objections from some investor advocates and key lawmakers. Supporters of the change say it makes sense in an era of increasingly globalized financial markets and would help lure foreign companies to U.S. markets.

The five SEC commissioners voted unanimously at a public meeting to propose a timetable for the switch to international financial reporting standards, or IFRS, to replace the U.S. standards known as generally accepted accounting principles, or GAAP.

Under the proposal, U.S. companies would have the option of adopting the international standards starting in 2010. The agency then would assess the outcome and decide the following year whether to make it mandatory for all U.S. public companies beginning in 2014 with a completion date of 2016.

The SEC could formally adopt the proposal sometime after a 60-day public comment period.

Wall Street interests and the accounting industry welcomed the plan Wednesday.

"We believe the capital markets ultimately will insist on IFRS for public companies," said Barry Melancon, president and chief executive of the American Institute of Certified Public Accountants. "Today's action by the SEC continues a robust and thoughtful debate that is critical as the transition occurs."

The SEC in November eliminated a rule requiring foreign companies with U.S.-traded shares to report their financial results in line with U.S. accounting standards.

Many foreign public companies comply with the international standards, and some had argued the U.S. mandate was burdensome and costly.

Among companies expressing support for the SEC move were Wall Street powerhouses Goldman Sachs Group Inc., Morgan Stanley, Citigroup, Deutsche Bank and Merrill Lynch & Co., as well as Microsoft Corp., Colgate-Palmolive Co. and German insurer Allianz SE.

But Senate Banking Committee Chairman Christopher Dodd, D-Conn., and Sen. Jack Reed, D-R.I., who heads its securities subcommittee, criticized the change. They contend it was premature because the convergence of GAAP and international standards isn't expected to be achieved until 2011.

The IFRS system is generally considered more flexible, and giving companies the choice could spell the end of GAAP, experts believe. The international standards are deemed especially desirable for large U.S. companies with foreign subsidiaries, which now must maintain two different sets of books.

Critics of the move toward international standards say investors will lose an important source of information used in making decisions and that it will be harder to compare the results of companies that use different standards.