SEC and CESR launch financial reporting work plan
03 Aug 2006
The US Securities and Exchange Commission and the Committee of European Securities Regulators (CESR) have released a joint work plan on financial reporting.
The main focus of the plan is the application by internationally active companies of International Financial Reporting Standards and US Generally Accepted Accounting Principles in the United States and the European Union, respectively. The plan envisions cooperation by the staffs of the SEC and CESR
on the modernization of financial reporting and disclosure information technology, and regulatory platforms for risk management. The stated goal of the staff cooperation is to promote:
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- the development of high quality accounting standards;
- the high quality and consistent application of IFRS around the world;
- full consideration of international counterparts' positions regarding application and enforcement; and
- the avoidance of conflicting regulatory decisions on the application of IFRS and US GAAP.
Regarding the use of IFRSs and US GAAP by internationally active issuers, plan plan envisions, among other things confidential protocols for timely alert and exchange of information between the SEC staff and CESR-Fin, as follows:
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