Washington, D.C., Nov. 15, 2007
The Securities and Exchange Commission today voted unanimously to help American investors better analyze and get more readily comparable financial information from the U.S. registered foreign companies in which they invest. The Commission's action responds to the record number of U.S. investors who own the securities of foreign companies, and the growing need for high-quality accounting standards that transcend borders.
Having considered extensive and informative public comment on its June 2007 proposal, the Commission today approved rule amendments under which financial statements from foreign private issuers in the U.S. will be accepted without reconciliation to U.S. Generally Accepted Accounting Principles only if they are prepared using International Financial Reporting Standards (IFRS) as issued by the International Accounting Standards Board. The purpose of the requirement to use the IASB-approved version is to encourage the development of IFRS as a uniform global standard, not a divergent set of standards applied differently in every nation. Consistency of application of IFRS will help U.S. investors who own foreign securities to have better comparability.
The final rule can be found on SEC offical site.
CFO direct Network is PricewaterhouseCoopers’ online resource for CFOs and other senior financial executives. By providing targeted, customized insights and analysis of the latest news in the financial world, CFOdirect Network can enhance your ability to anticipate and respond to changing business conditions and financial accounting rules.
To access CFOdirect Network click here.
