IFRS a year early for US-listed European firms

and the US are expected to sign an agreement on the required reporting
standards later this week during a meeting of the Transatlantic Economic
Council, the US ambassador to the EU said yesterday.

It appears the US financial market regulator has yielded to EU pressure to
bring forward the date on which the obligation to use US Generally Accepted
Accounting Principles (GAAP) is abolished, Director of Finance online
reports. The US expects the EU on its part to introduce similar changes for US
companies with a European listing.

In February 2006, Charlie McCreevy, EU internal market commissioner, and
Christopher Cox, US Securities and Exchange Commission (SEC) chairman, expressed
their commitment to eliminate the need for reconciliation between
Financial Reporting Standards
(IFRS) and GAAP.

McCreevy stressed the approval of the financial statements by the regulatory
authority in the home jurisdiction should be included in any decisions taken by
the regulatory authorities in other markets.

Further reading:

the story in Director of Finance online

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US-quoted companies urge reconciliation shift

Related reading

Fiona Westwood of Smith and Williamson.