SEC and International Accounting Standards

In a very important vote, the Securities and Exchange Commission dropped a requirement that foreign companies with United States trading exchange listings that comply with rules set by the International Accounting Standards Board (ISAB) still must reconcile their accounting records to comply with United States accounting rules.  The international accounting rules are less detailed than the United States rules and cost less to implement.  The SEC agreed with our major exchanges that have lobbied for the change so as to better attract foreign issuers.  Some United States issuers have objected, arguing that one set of rules should apply to all listed companies.  All have to agree, however, that the vote is an expression of qualification on the quality or rationality of United States accounting rules.