RegulationAccounting StandardsUS companies await SEC rules verdict

US companies await SEC rules verdict

US-listed companies discover today whether they will have to continue filing statements reconciling their accounts with US accounting rules

Companies listed in the US will find out today whether they will have to
continue filing statements reconciling their accounts with US accounting rules,
as the Securities and Exchange
Commission
votes on the issue.

The Financial Accounting Standards Board in the US appeared to put a spanner
in the works this week, calling for a delay to the move, which will make life
much easier for foreign companies listed in the US.

The FASB said that any moves to remove the ‘reconciliation statement’, as it
is known, should only take place when there is a timetable in place to move all
companies to IFRS and to properly fund the International Accounting Standards
Board.

‘We acknowledge the concerns of those who believe eliminating the
reconciliation would be premature and would result in a loss of information that
some investors find important… the number of SEC registrants affected by this
change appears relatively small when compared to the overall size of our capital
market,’ Robert Herz, chairman of FASB, and Robert Denham, FASB oversight body
chairman, said in a joint letter to the SEC.

The FASB believes that permitting choice between US GAAP and IFRS for US
companies could lead to a two-GAAP system, which would be unnecessarily complex
for users of financial information.

Related Articles

Demystifying GDPR for accountants

Accounting Standards Demystifying GDPR for accountants

2w Ellen Temperton, Lewis Silkin
EY fined £1.8m over Tech Data audit

Accounting Standards EY fined £1.8m over Tech Data audit

2m Emma Smith, Managing Editor
The great professional services shake-up

Accounting Standards The great professional services shake-up

3m Fergus Payne, Lewis Silkin
What do clients actually want from an accountant?

Accounting Standards What do clients actually want from an accountant?

4m Emma Smith, Managing Editor
Accountants shouldn’t neglect hybrid mismatch anti-avoidance rules

Accounting Standards Accountants shouldn’t neglect hybrid mismatch anti-avoidance rules

4m Alison Conley
Membership of the accountancy profession on the rise

Accounting Standards Membership of the accountancy profession on the rise

5m Alia Shoaib, Reporter
The real price of mates' rates in the provision of professional services

Accounting Standards The real price of mates' rates in the provision of professional services

5m DAC Beachcroft
IASB overhauls insurance accounting with issuance of IFRS 17

Accounting Standards IASB overhauls insurance accounting with issuance of IFRS 17

7m Alia Shoaib, Reporter