Friday, November 16, 2007
The SEC decided unanimously that foreign corporations that use the International Financial Reporting Standards (IFRS) set by the International Accounting Standards Board will no longer have to reconcile their financial statements to conform to GAAP. The new rule will take effect immediately. Chair Cox said that the agency would consider allowing U.S. issuers to adopt IFRS as well. Commissioner Nazareth expressed concern about how to assure that IFRS is consistently applied. NYTimes, S.E.C. Says Foreign Companies Do Not Have to Adjust to U.S. Accounting; WSJ, Global Accounting Effort Gains a Step.