Tuesday, July 3, 2007
The SEC issued a press release, announcing the publication for public comment of a proposal to eliminate the current requirement that foreign private issuers filing their financial statements using International Financial Reporting Standards (IFRS) as published by the International Accounting Standards Board (IASB) also file a reconciliation of those financial statements to U.S. Generally Accepted Accounting Principles (U.S. GAAP). The Commission voted unanimously on June 20, 2007, to issue the proposal for public comment.
SEC staff also published a report noting some general observations about the application of IFRS based on staff reviews of annual reports from more than 100 foreign private issuers containing financial statements prepared for the first time using IFRS. The agency has launched a new Web page that consolidates SEC staff correspondence on those completed filing reviews as well as company responses to the comment letters.
Under the SEC's current rules, foreign private issuers are required to reconcile to U.S. GAAP the financial statements that they file with the Commission if their financial statements are prepared using any basis of accounting other than U.S. GAAP.