RegulationAccounting StandardsChristmas has come early – CBI

Christmas has come early - CBI

Move by US regulator will save companies 'an awful lot of hassle'

Christmas has come early, according to the Confederation of British Industry,
who celebrated the decision of the US regulator to abandon the reconciliation
statement for companies listed there.

The long-awaited decision came following a unanimous
vote at the Securities and Exchange
Commission’s Washington head office.

The decision means that foreign companies who report accounts in the US can
simply use IFRS and will no longer have to compile a separate set of accounts
calculated in accordance with US GAAP.

CBI deputy director-general John Cridland said the move would save companies
‘an awful lot of hassle.’

‘Having to publish two sets of accounts that essentially say the same thing
is clearly a needless duplication, and businesses have been hoping for this move
for some time.

‘The removal of this bureaucratic layer will allow companies to save time and
costs, while maintaining high standards of financial reporting,’ he said.

Further reading:

SEC
changes accounting for foreign firms

SEC scraps IFRS-GAAP reconciliation
rule

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