EU rules on waiver for companies to file in GAAP

EU has formalised a waiver, enabling companies to file financial statements
in European markets using US generally accepted accounting principles (GAAP) as
well as the accounting standards of five other countries without reconciling
them to International Financial Reporting Standards (IFRS).

The measures introduced by the EC declare US GAAP and accounting standards
from Canada, China, Japan, South Korea and India ‘equivalent’ to IFRS as adopted
in the EU, WebCPS reports.

Charlie McCreevy, European internal market and services commissioner,
welcomed the measures. ‘Today’s adoption by the commission is a momentous step.
It marks the culmination of important work spanning several years,’ he said.

EC said that it would review the standards in Canada, China, South Korea and
India by 2011 at the latest.

Further reading:

EU accepts local accounting standards from six

the WebCPA story

Related reading

Fiona Westwood of Smith and Williamson.