Consistent application of IFRS in the EU. While CESR, auditors, and preparers of financial statements all have responsibilities in this area, "what is absolutely clear is that we do not want any EU body, formal or informal, providing EU interpretations and guidance. Where interpretations need to be done, this must be the job of the responsible body of the IASB, namely IFRIC."

Equivalence between third country GAAP and IFRS. "Making IFRS work in the EU puts us in a position to be able to claim an even bigger prize: greater access of EU companies to global capital markets. This should include removal of the reconciliation requirement to US GAAP for companies which list in the US. The US SEC agreed to a Road-map in April 2003 with the aim of working towards this at the earliest in 2007 and at the latest in 2009. In the EU we are, of course, also looking into the use of third country GAAP in order to establish whether these might be considered equivalent with IFRS. For the moment, my view is that the best way to proceed is for the EU to defer an equivalence decision and prolong the status quo, rather than taking any decision now. This option would align the EU's equivalence agenda with the US Roadmap for dropping the reconciliation requirement for foreign issuers in the US. It would mean we could work in parallel towards common agreed objectives."

I. RECENT RULES, PROPOSED RULES, INTERPRETIVE BULLETINS, AND OTHER COMMISSION ACTIVITY

• A. Final Rules Regarding Securities Offering Reform
• B. Regulatory Relief and Assistance for Hurricane Katrina Victims
• C. Employee Stock Options
• D. Final Rule regarding IFRS First-time Adopters
• E. Final Rules Regarding Use of Form S-8, Form 8-K, and Form 20-F by Public Shell Companies
• F. Final Rules Regarding Asset-Backed Securities
• G. Final Rules and Concept Release Regarding the Use of Tagged Data
• H. Accelerated Filer
• I. Management's Report on Internal Control over Financial Reporting and Certification of Disclosure
• in Exchange Act Periodic Reports
• J. Management's Discussion and Analysis
• K. Rule Proposals Related to Proxy Materials
• L. Public Release of Comment Letters and Responses
• M. Recent Enforcement Actions Involving MD&A;
• N. Recent Enforcement Actions Involving GAAP II. OTHER CURRENT ACCOUNTING AND DISCLOSURE ISSUES
• A. Dividend Policy Disclosures
• B. Classification and Measurement of Warrants and Embedded Conversion Features
• C. Statement of Cash Flows
• D. Oil and Gas
• E. Leasing
• F. Revenue
• G. Business Combinations
• H. Investments
• I. Contingencies and Loss Reserves
• J. Pension, Post Retirement, and Post Employment Plans
• K. FIN 46 and Deconsolidation
• L. Segment Disclosure
• M. Issues Associated With SFAS 133, Accounting for Derivative Instruments and Hedging Activities
• N. Market Risk Disclosures
• O. Allowance for Loan Losses
• P. Loans and Other Receivables
• Q. Materiality Assessments and the Use of Sampling
• R. Independent Registered Auditors III. OTHER INFORMATION ABOUT THE DIVISION OF CORPORATION FINANCE AND OTHER COMMISSION OFFICES AND DIVISIONS

Long touted by some as a strength of our reporting system, the detail and volume of accounting, auditing, and reporting guidance now pose a major challenge to maintaining and enhancing the quality and transparency of financial reporting to investors and the capital markets. Many, including some members of the FASB, believe that the current system has engendered a check-the-box, form-over-substance approach to accounting, auditing, and reporting by preparers, auditors, and regulators, sapping professionalism and increasingly necessitating the involvement of technical experts to ensure compliance. It has also provided fertile ground for those attempting to structure form-over-substance arrangements to obtain desired accounting outcomes. This complexity has also added to the costs and effort involved in financial reporting, which often fall disproportionately on small and private companies and their auditors. It has also created a black box view of financial reporting by many who are not familiar with the intricacies of the underlying accounting, auditing, and reporting requirements. For professional investors and analysts, it results in a lack of transparency and significant analytical complexity in using reported financial information. And it is viewed as a contributory factor to the unacceptably high and increasing number of restatements of financial reports by public companies.