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Deloitte letter to CESR on GAAP equivalence

  • Deloitte Comment Letter Image

31 May 2005

Deloitte has submitted a letter of comment to the Committee of European Securities Regulators (CESR) on CESR's 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.

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 EC had also asked CESR to include, in its report on equivalence, a description of the enforcement mechanisms that are in place in each country. The EC has asked to have CESR's final advice by 30 June 2005. Click to download: CESR invited comments on their tentative views. (PDF 35k) states:

We believe this equivalence project has made a valuable contribution to the shared understanding of both the common ground and the differences between the leading sets of GAAP and we are supportive of the concept of focusing on "real world outcomes of investor behavior" and efficient remedies that are targeted on what really matters to investors. However, we do have reservations about the role and capacity of the auditor in this regard, which we address in our detailed comments.

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