SEC proposes to drop reconciliation for IFRS registrants
21 Jun 2007
On 20 June 2007, the US Securities and Exchange Commission agreed to issue a 'proposing release' that would eliminate the requirement to reconcile financial statements to US GAAP if the financial statements are in full compliance with the English language version International Financial Reporting Standards (IFRSs) as published by the International Accounting Standards Board.
In a Press Release (PDF 43k), Sir David Tweedie, IASB chairman, commented on the importance of the SEC decision: The SEC's proposal shows its recognition of the tangible benefits of a single set of financial reporting standards used in the world's integrating capital markets and the relevance of the continuing IASB-FASB convergence process to the economies of the US and the rest of the world. If approved, the rule will eventually reduce significantly the barriers to capital flows between countries using full IFRSs and the United States. We appreciate the SEC's continued support of our work. Our ultimate aim at the IASB is to have a single set of accounting standards used worldwide. The SEC's proposal is an important step in achieving that goal, but much work remains to be done. |