June 21, 2007
IFRS more of an option for SEC Filers
In recognition of a global business world, the SEC is taking yet another move towards real recognition that US GAAP is not the only standard for accounting that should be used on US financial statements. Foreign companies have been able to use IFRS (International Financial Reporting Standards) for about a year, but few foreign filers have taken advantage. This is probably because companies still had to reconcile between the two standards.
Now the SEC is proposing that IFRS be adopted for 2008 financial statements with no reconciliation. Now that is real recognition of global markets. This is a good move and should cut a great deal of unnecessary busy work for public companies.
Excerpt from the article from cbc.ca is here:
"U.S. securities regulators on Wednesday tentatively agreed to ease an accounting requirement for foreign companies that trade on U.S. exchanges.
The action by the Securities and Exchange Commission paves the way for a related change that would allow public companies, when reporting financial results, to choose between international and U.S. accounting standards.
The first step taken by the SEC on Wednesday would eliminate a requirement for foreign companies to "reconcile" their financial results with U.S. standards called generally accepted accounting principles, or GAAP. Foreign companies, which already adhere to international financial reporting standards, or IFRS, say the SEC mandate is burdensome and costly..."
If your company has to comply with SOX 404 or NI 52-109, and wants to do it in a sensible and cost effective way, contact http://www.issuescentral.com/ for more information on Compliance Playbook® for companies based outside of Canada. For Canadian based companies, see http://www.compliancepartner.ca/ for more information on Compliance Partner™ from Thomson
Now the SEC is proposing that IFRS be adopted for 2008 financial statements with no reconciliation. Now that is real recognition of global markets. This is a good move and should cut a great deal of unnecessary busy work for public companies.
Excerpt from the article from cbc.ca is here:
"U.S. securities regulators on Wednesday tentatively agreed to ease an accounting requirement for foreign companies that trade on U.S. exchanges.
The action by the Securities and Exchange Commission paves the way for a related change that would allow public companies, when reporting financial results, to choose between international and U.S. accounting standards.
The first step taken by the SEC on Wednesday would eliminate a requirement for foreign companies to "reconcile" their financial results with U.S. standards called generally accepted accounting principles, or GAAP. Foreign companies, which already adhere to international financial reporting standards, or IFRS, say the SEC mandate is burdensome and costly..."
If your company has to comply with SOX 404 or NI 52-109, and wants to do it in a sensible and cost effective way, contact http://www.issuescentral.com/ for more information on Compliance Playbook® for companies based outside of Canada. For Canadian based companies, see http://www.compliancepartner.ca/ for more information on Compliance Partner™ from Thomson
