SEC to allow choice of US GAAP or IFRS

Foreign companies listing in the US will be able to choose between reporting
in IFRS or US GAAP, the market regulator revealed today.

The Securities & Exchange
said it would take comments following a release of
proposals this Summer on its roadmap to
allow foreign private issuers to choose between reporting in IFRS or US GAAP.

It will propose to allow companies to make a choice from 2009, which fits
with future plans to converge IFRS and US GAAP. The SEC will also ask for
comments on whether all companies listed on US markets should have a choice of
reporting in either standard.

‘The next steps that the commission is announcing today will keep us on
course with the roadmap announced in 2005,” said SEC chairman Christopher Cox.

Pending public comments on the proposal, ‘we remain on track to eliminate
reconciliation by 2009,’ Cox added.

Further reading:

Convergence chasm shows no
signs of closing

SEC announces roundtable for IFRS

SEC mulls IFRS for non-US firms

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