IASB Welcomes US SEC Proposal to Allow IFRS Without Reconciliation
The International Accounting Standards Board (IASB) has welcomed the decision of the US Securities and Exchange Commission (SEC) to propose allowing non-US companies to file financial results according to International Financial Reporting Standards (IFRS) as approved by the IASB. The change would permit non-US companies to access US capital markets without reconciliation with US generally accepted accounting principles (GAAP) by 2009. The SEC emphasised that this proposal applies only to those companies filing financial statements according to full IFRS. The SEC’s decision reflects the increasing acceptance of IFRS as a widely used and high quality financial reporting language. It also proves the significant progress that has been made in the convergence process between the IASB and the US Financial Accounting Standards Board (FASB).