CESR consults on national GAAP IFRS equivalence
23 Apr 2007
The Committee of European Securities Regulators (CESR) is seeking technical advice on a mechanism for determining the equivalence of the generally accepted accounting principles of non-EU countries with IFRSs.
Under EU law, non-EU ('third country') issuers trading on an EU-regulated market must, starting in 2009, follow either EU-endorsed IFRSs or their national GAAP if that GAAP has been deemed equivalent to IFRSs. The decision on whether a national GAAP is equivalent rests with the European Commission. The Commission has asked CESR for advice regarding the definition of equivalence and a mechanism for determining equivalence. CESR has invited comments on its proposed mechanism.
Comments are requested by 8 May 2007. Click to download:
The key elements of CESR's proposed mechanism for determining equivalence are:
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- CESR Consultation Paper (PDF 102k)
- CESR Press Release (PDF 70k)