SEC's Acceptance Of IFRS: A Significant Step

Law360 (November 27, 2007, 12:00 AM EST) -- In a significant step towards convergence of globally accepted accounting standards, the Securities and Exchange Commission (“SEC”) has voted to adopt rules to enable “foreign private issuers” to provide financial statements based upon International Financial Reporting Standards (“IFRS”) without reconciliation to U.S. Generally Accepted Accounting Principles (“GAAP”).

While immediately impacting many foreign public companies, the new position by the SEC signals a changing landscape for U.S. domestic public companies as well.

Reconciliation

For more than four decades, foreign private issuers conducting registered U.S. offerings or registering...
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