ARC recommends deferral of convergence decision
27 Apr 2006
At its meeting on 24 April 2006, the European Commission's Accounting Regulatory Committee (ARC) recommended that the Commission defer a decision on whether Canadian, Japanese, and/or US GAAP are equivalent to IFRSs for the purpose of financial statements prepared by non-EU companies listed on EU regulated securities markets.
This would mean that non-EU issuers using one of those three countries' GAAPs may continue to use that GAAP, without having to restate to IFRSs, in prospectuses filed through 31 December 2008. However, from 1 January 2007, non-EU issuers using a national GAAP other than Canadian, Japanese, or US GAAP will be required to restate their financial statements using IFRSs – unless their national GAAP is equivalent to IFRSs. A national GAAP from a jurisdiction other than one of those three will be deemed equivalent to IFRSs only if the notes to financial statements drawn up in accordance with those national standards contain an explicit and unreserved statement that they comply with International Financial Reporting Standards. The foregoing recommendations must be approved by the European Commission. Click for: