SEC, EC support IASB-FASB convergence plan

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04 Mar 2006

Both the US SEC and the European Commission have issued press releases expressing strong support for the updated Memorandum of Understanding (MOU) (PDF 68k) published jointly by the US FASB and the IASB earlier this week.

The MOU sets out a roadmap agreed to by both FASB and the IASB for steps toward convergence between IFRSs and US GAAP over the 2006-2008 period. Here are the: The SEC's release said:

In recent weeks, SEC Chairman Christopher Cox has publicly stressed the agency's commitment to a 'roadmap' for elimination of the requirement that foreign private issuers reconcile financial statements prepared using international financial reporting standards to the U.S. system of Generally Accepted Accounting Principles (GAAP). "The SEC is working diligently toward the goal of eliminating the existing IFRS to U.S. GAAP reconciliation requirement", he said today. "Achieving that goal depends on the contributions of many parties, including U.S. and international standard setters. This important step by IASB and FASB will help ensure that investor protection remains paramount in these efforts."

You can find more information about the MOU in our News Story of 27 February 2006.

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