Commissioner McCreevy welcomed the adoption on 21 December 2007 of a key Regulation by the Commission, following a favourable opinion of the European Parliament. This Regulation sets out the on which third-country Generally Accepted Accounting Principles (GAAPs) can be found equivalent to International Financial Reporting Standards (IFRS) which are adopted by the EU.
The Commission now can present concrete proposals on which third country GAAPs should be accepted as equivalent with effect from 2009. The Commission will also be entitled to allow third country issuers to use their GAAPs in the EU for a transitional period ending in 2011 at the latest, provided these countries are converging with IFRS or the respective third country intends to adopt IFRS.
Already last month the US Securities and Exchange Commission adopted proposals to dispense with the reconciliation requirement to US GAAP for foreign issuers using IFRS, including EU companies.
Press release
© Graham Bishop
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