McCreevy welcomes the SEC decision on reconciliation to US GAAP

16 November 2007

Commissioner McCreevy welcomed the US SEC decision to abolish the reconciliation to US GAAP for foreign companies using IFRS. The EU was the first major jurisdiction to make IFRS mandatory for its listed companies and remains by far the largest jurisdiction applying IFRS.

 

The Commission recently issued a joint statement with the US SEC, the Japanese Financial Services Agency and IOSCO announcing reforms of the overall governance of the IASB and its parent entity, the International Accounting Standards Committee (IASC) Foundation. The statement foresees, among other requirements, measures to enhance the transparency and due process of the IASB’s standard-setting process. This is part of a broader strategy to ensure that the IASB’s standards can be fully endorsed in the EU and that the existing carve-out concerning hedging rules can be removed.

 

Press release

© Graham Bishop