SEC poised to accept IFRS from foreign-based plcs

A new SEC proposal has paved the way for
foreign public companies listed in the US to choose international accounting
standards or US rules when filing data with the regulator .

The SEC proposal sets the stage for foreign companies listed in the US to
issue their financial reports using the English version
International Financial Reporting Standards (IFRS)
instead of
US Generally Accepted
Accounting Principles, or GAAP.

Its all part of the SEC’s goal of eliminating the requirement that foreign
companies reconcile their financial statements to US GAAP by 2009. It also
brings the US closer to other major financial centers that have embraced
international reporting standards.

‘Global accounting standards would allow investors to draw better and more
accurate comparisons among issuers around the world,’ said SEC chairman
Christopher Cox.

Further reading:

US edges closer to standard harmony

US discovers world standards

PCAOB issues principles-based Sarbox tonic

Related reading

Fiona Westwood of Smith and Williamson.