EFRAG comments on CESR 'equivalence' assessment
04 Jan 2005
The European Financial Reporting Advisory Group (EFRAG) has submitted its letter to the Committee of European Securities Regulators (CESR) in response to CESR's October 2004 Concept Paper on Equivalence of Certain Third Country GAAP and on Description of Certain Third Countries' Mechanisms for Enforcement of Financial Information.
The meaning of 'significant differences' in accounting standards could be clarified by improving the definition in the concept paper. We believe it is important to find and evaluate all existing differences between IAS/IFRS and third country GAAP, to be able to conclude whether these can result in 'significant differences'. Differences may have very different impacts on different entities within one industry and may also have different impacts on entities in different industries. We understand the practical difficulties, but we are concerned that equivalence may be assessed at a too high level and therefore differences that might lead to significant differences may not be assessed at all. We therefore recommend a more thorough analysis of the differences. |
- (PDF 289k).
- EFRAG's Response (PDF 38k).