SEC Chairman discusses issues relating to IFRSs

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20 May 2007

In an Address to the Security Traders Association 11th Annual Washington Conference, US Securities and Exchange Commission Chairman Christopher Cox spoke about the benefits of global accounting standards and some of the pitfalls in achieving those benefits.

Here is an excerpt:

The vision behind International Financial Reporting Standards is that a single worldwide set of standards would permit investors anywhere on earth to benefit from a high level of comparability and a consistently high level of quality in financial reporting. It would eliminate the need for investors and analysts to try to understand financial statements that are prepared using different accounting standards from many jurisdictions, and it would eliminate one of the significant barriers to raising capital outside one's borders. IFRS promises to integrate our markets, but that promise is jeopardized unless IFRS is applied faithfully and consistently across all jurisdictions. Regulators have to beware of the impulse to develop nationally-tailored versions of IFRS, and we've got to cooperate with one another in implementing a set of standards that is faithfully and consistently applied.

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