EC deems some local GAAPs equivalent to IFRSs
Dec 16, 2008
The European Commission has adopted certain measures designating the GAAPs of the United States, Japan, China, Canada, South Korea, and India to be equivalent to International Financial Reporting Standards (IFRSs) as adopted by the EU.
Because the decision on equivalence presumes that certain steps currently in process in some of these countries will be completed, the Commission intends to review the situation in China, Canada, South Korea, and India by 2011 at the latest. The Commission will also regularly monitor the ongoing status of equivalence and report to Member States and Parliament where necessary.
As a result of the action taken by the Commission, non-EU companies listed on EU markets will continue to be able to file their financial statements prepared in accordance with their national GAAPs (the current provisions allowing the use of these GAAPs in the EU would otherwise have expired at the end of 2008).