18 December 2007

CESR consultation on equivalence of Chinese, Japanese and US GAAP

CESR published a consultation paper on it’s advice on the equivalence of Chinese, Japanese and US GAAP to assist the Commission in determining, the equivalence of third country GAAP under the Prospectus and Transparency Directives.

CESR received a draft mandate from the Commission in August 2007 requesting CESR to produce a technical advice providing a factual assessment of the equivalence of specific third country GAAPs and an assessment of the existing convergence or adoption programmes of other third country GAAPs.

On US GAAP CESR would recommend that the Commission finds US GAAP equivalent to IFRS for use on EU markets.

On Japanese GAAP would recommend that, come June 2008, the Commission should consider Japanese GAAP equivalent, unless there is no adequate evidence of the ASBJ achieving to timetable the objectives set out in the Tokyo Agreement.

Finally, with regard to the Chinese GAAP CESR would recommend that the Commission postpones a final decision until there is more information available.

If the Commission were minded to allow Chinese issuers to use Chinese GAAP when accessing EU markets, CESR would recommend the Commission consider accepting Chinese GAAP according to article 4 of the draft Commission Regulation on the mechanism until such time as there is adequate evidence to enable a decision to be made under article 2 thereof.

CESR intends to consult shortly on other third country GAAPs (e.g. Canada, South Korea).

The Commission has to determine the equivalence of third country GAAP under the Prospectus and Transparency Directives by 1 July 2008.

CESR must respond to the Commission which is 29 February 2008. CESR expects to delay the submission of its final advice to the Commission until the end of March.

An Open Hearing will be held in Paris on 21 January 2008.

Deadline for consultation is 25 February 2008.

Press release

Consultation paper

© CESR - Committee of European Securities Regulators