09 February 2006

McCreevy and Cox affirm commitment to elimination of the need for reconciliation requirements

Commissioner McCreevy and SEC Chairman Cox affirmed their commitment to eliminating the need for reconciliation between IFRS and US GAAP. Both agree that mutual efforts should focus on creating the conditions that facilitate use of US GAAP and IFRS in each other’s jurisdiction. They are expected to meet later this year to review the progress.

McCreevy noted that the approval of the financial statements by the regulatory authority in the home jurisdiction should be included in any decisions taken by the regulatory authorities in other markets. 'I very much welcome the fact that Chairman Cox has confirmed the SEC's commitment to work towards global accounting convergence”, the Commissioner said.

Commissioner Mc Creevy also mentioned his intention to propose to Member States and the European Parliament to postpone the decision on the possible equivalence of US GAAP with IFRS for two years. 'Such a postponement, which I believe is important, would align the two timetables for equivalence and would give both of us the possibility to monitor closely developments in the other jurisdiction.'

Commissioner McCreevy stressed the need to deepen the co-operation between the European Commission and the SEC: 'As the pace of developments accelerates, it is of crucial importance that there are regular meetings between Commission and SEC officials to establish staging posts and take stock of developments.”

Press release

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