FESE issued its response on the SEC consultation on the “Acceptance from Foreign Private Issuers of Financial Statements Prepared in Accordance with International Financial Reporting Standards without Reconciliation to US GAAP”.
FESE notes that the SEC’s proposal would only eliminate US GAAP reconciliation for companies that publish financial statements in accordance with IFRS as published by the IASB.
The IAS Directive requires companies whose securities are admitted to trading on a regulated market of any EU Member State to prepare their financial statements according to IFRS. Although there is no material difference between IFRS as adopted by the EU and IFRS as published by the IASB, under the current wording of the SEC proposal, for EU companies, the reconciliation requirement would not be removed.
FESE therefore suggests that the SEC consider eliminating the reconciliation requirement also for companies that publish financial statements in accordance with IFRS as adopted by the EU, in order to maximise the benefits of this welcomed proposal.
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© Graham Bishop
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