SEC to work closely with Europe on IFRS

The US Securities and Exchange Commission has moved to abate fears over its
extraterritorial powers over European companies by promising to work closely
with EU regulators on International Financial Reporting Standards.

The watchdog has issued, alongside the Committee of European Securities
Regulators, a joint work plan to ‘endeavour to avoid conflicting regulatory
decisions on the application of IFRS and US GAAP’.

There have been concerns the SEC rulings on the application of IFRS could
become the defacto standards if European enforcement becomes weak or
inconsistent, reports the Financial Times.

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