CESR launches a consultation on the mechanism for determining the equivalence of the generally accepted accounting principles of third countries. On March 2007
CESR submitted its first advice containing a definition of equivalence.
Key elements include:
national standard setter should assess whether disclosures and measurement principles are materially the same as IFRS
if there are no significant differences between the third country GAAP and IFRS, such GAAP may be deemed equivalent without the need of additional rectification disclosures
even in cases where there are significant differences, the third country GAAP may be considered equivalent to IFRS if those differences identified can be rectified at company level by non-complex disclosures.
Deadline for responses is 8 May 2007.
CESR expects to postpone the submission of the final advice to the Commission until the end of May. The Commission must adopt a legal measure on the definition of equivalence and the determination of equivalence by 31 December 2007.
Press release
Consultation paper
© CESR - Committee of European Securities Regulators
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