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European Union (old) Image

McCreevy discusses convergence, equivalence

29 Apr 2005

In a (PDF 92k) on the integration of Europe's financial markets and international cooperation in New York on 20 April 2005, EC Internal Markets Commissioner Charlie McCreevy discussed, among other things, the reconciliation from IFRS to US GAAP, accounting convergence, the internal control provisions of Section 404 of the Sarbanes Oxley Act, and deregistration.

An excerpt:

The goal must be mutual recognition of equivalence. You can also call it the home-country principle. If you agree to accept each other's system as equivalent then duplicative requirements disappear. You can then operate in the other country under the rules of your home country. I think we should find more areas in our transatlantic relation where we can apply this principle. In accounting, in insurance, for securities markets and in all the other financial regulation.

European Union (old) Image

CESR publishes its draft equivalency report

29 Apr 2005

The Committee of European Securities Regulators (CESR) has invited comments on its tentative conclusions that Canadian, Japanese, and US GAAP, taken as a whole, are "equivalent to IFRSs, subject to a number of additional disclosures" for the purpose of listings by non-European companies in European public securities markets.

European companies trading in European securities markets are required to start using IFRSs in 2005. Non-European companies are allowed to continue to use their national GAAPs until 2007. The European Commission is studying whether to allow Canadian, Japanese, and/or US GAAP to continue to be used after 2007 and has asked CESR for its views. The European Commission had also asked CESR to include, in its report on equivalence, a description of the enforcement mechanisms that are in place in each jurisdiction. The European Commission has asked to have CESR's final advice by 30 June 2005. CESR's comment deadline is 27 May 2005. CESR will hold an open hearing at its offices in Paris on the afternoon of 18 May 2005. Click to download:
News default Image

Comments invited on due process, IFRIC

27 Apr 2005

The Trustees of the International Accounting Standards Committee Foundation (IASCF) have published for public comment two consultation documents: Due Process of IASB: Draft Handbook of Consultative Arrangements. IFRIC - Review of Operations: Consultative Document. The deadline for public comment on both documents is 31 July 2005. You can download the invitations to comment from the IASB Website.

Click for Press Release (PDF 49k).
News default Image

IASB expands its SME working group

26 Apr 2005

The IASB has expanded its working group on Accounting Standards for Small and Medium-sized Entities (SMEs) to include more preparers and users of SME financial statements as well as others with a particular SME expertise.

SMEs are entities that (a) do not have public accountability and (b) publish general purpose financial statements for external users. Click for:
China Image

China Financial Reporting Update

23 Apr 2005

We have posted Deloitte's China Financial Reporting Update 2004 Year-End Review (PDF 112k).

This edition contains a comprehensive review of accounting, auditing, and corporate government standards and guidance issued during 2004 in the People's Republic of China by the Ministry of Finance, the China Securities Regulatory Commission, and the Chinese Institute of Certified Public Accountants. We will post the Chinese translation of this Update shortly. You will find past issues of this Update Here.
News default Image

Notes from the IASB meeting with FASB

23 Apr 2005

On Thursday and Friday 21-22 April 2005, the IASB held a joint meeting with the US Financial Accounting Standards Board.

Click to go to our preliminary and unofficial Notes from the Joint Meeting on 21-22 April 2005.
European Union (old) Image

Agenda for ARC meeting May 2005

22 Apr 2005

The Accounting Regulatory Committee of the European Commission will meet in Brussels on 20 May 2005.

The Published Agenda (PDF 17k) includes the following IFRS-related items:

  • Formal vote on adoption of amendments to IAS 39 and SIC-12
  • Formal vote on adoption of IFRS 6, Amendment to IAS 19, IFRIC 4, and IFRIC 5
  • Information about the state of play on IFRIC 3 (EFRAG has recommended that the Commission not adopt IFRIC 3 for use in Europe)
  • Acceptance of IFRSs in the US capital markets and the Constitutional review of the IASCF
  • IFRSs and European Official Statistics – presentation by Eurostat
  • IASB's Project to Develop Accounting Standards for SMEs – discussion of the Commission's draft reply to the IASB questionnaire


SEC (old) Image

SEC 'roadmap' to eliminating IFRS reconciliation

22 Apr 2005

William Donaldson, Chairman of the US SEC, and Charles McCreevy, EU Internal Market Commissioner, met yesterday in Washington to discuss a range of topics of mutual interest between the SEC and the European Union, including expanding the use of high-quality global accounting standards and eliminating the reconciliation to US GAAP for IFRS filers.

An SEC press release (PDF 65k) about the meeting states:

Chairman Donaldson reaffirmed his support for the convergence program being undertaken jointly by the International Accounting Standards Board and the US Financial Accounting Standards Board. Chairman Donaldson also discussed with Commissioner McCreevy a 'roadmap' developed by SEC staff that highlights the steps needed to eliminate the US GAAP reconciliation requirement for foreign private issuers that use International Financial Reporting Standards, or IFRSs. The roadmap establishes a goal of eliminating the requirement as early as possible between now and 2009 at the latest.


SEC (old) Image

'A Securities Regulator Looks at Convergence'

22 Apr 2005

The US Securities and Exchange Commission has released for public distribution an article titled A Securities Regulator Looks at Convergence, by SEC Chief Accountant Donald T.

Nicolaisen. Mr. Nicolaisen introduces his article as follows:

In the pages that follow I explain why I believe the movement towards use of a single set of globally accepted accounting standards is good for the global capital markets, and for investors and creditors (collectively, investors). I also discuss what I believe this movement means for the US capital markets and, in response to a question I am frequently asked, I attempt to set out a possible roadmap to elimination of the SEC's requirement that foreign private issuers reconcile financial statements prepared under IFRSs to US GAAP. Further, I describe factors that I believe can contribute to successful implementation and to increasingly widespread acceptance and use of IFRSs, or which, if not addressed, could impede progress. Lastly, I express my view that to maximize the benefits from a common set of accounting standards – IFRSs – the many involved parties need to work together on interpretive matters that arise in applying it.

Click to (PDF 228k).
European Union (old) Image

EC comments on SEC 'roadmnap'

22 Apr 2005

The European Commission highlighted the progress made between the EC and the SEC (see news story below) in a (PDF 77k) titled Accounting Standards: EU Commissioner McCreevy Sees Agreement with SEC as Progress Toward Equivalence.

The reference to 'equivalence' relates to a study currently underway within the European Commission to assess whether US GAAP, Canadian GAAP, and/or Japanese GAAP are 'equivalent' to IFRSs and, therefore, should be allowed for non-European companies in European capital markets. An excerpt from Commissioner McCreevy's press release:

I very much welcome the constructive approach the SEC is taking to moving these critical issues forward. We will work closely together to promote the closer alignment of IFRS and US GAAP and towards the elimination of US GAAP reconciliation requirements for foreign private issuers. These are major steps towards high-quality global accounting standards, which the European Union strongly supports. Clearly there is much to do all round, but the bandwagon has now started. International accounting standard setters, preparers, issuers, auditors and regulators must now accelerate their efforts to seize this unique opportunity. They must set clear goals and deliver the necessary convergence, consistency and enforcement required. I will be pressing all concerned in Europe to play their part.

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