Proposal regarding 'third country' GAAPs in the EU starting 2009

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13 Jun 2008

The European Commission has proposed to amend the European Directive (law) on prospectuses to require that, starting 1 January 2009, 'third country' (non-European) issuers whose securities trade in a European securities market shall present their historical financial information in accordance with one of the following four sets of accounting standards:

  1. International Financial Reporting Standards (IFRSs) adopted pursuant to Regulation (EC) No 1606/2002 (known as 'IFRSs as adopted by the European Union').
  2. IFRSs as adopted by the IASB, provided that the notes to the audited financial statements that form part of the historical financial information contain an explicit and unreserved statement that those financial statements comply with IFRSs in accordance with IAS 1 Presentation of Financial Statements.
  3. Generally Accepted Accounting Principles of Japan;
  4. Generally Accepted Accounting Principles of the United States of America.
GAAPs of China, Canada, and South Korea are also acceptable until 2011. The Regulation would be immediately binding in all Member States. Click for Proposed Amendment (PDF 23k).

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