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CESR recommends the Commission find US GAAP equivalent to IFRS for use on EU markets. Also, CESR recommends to consider Japanese GAAP equivalent, unless there is no adequate evidence of the ASBJ achieving to timetable the objectives set out in the Tokyo Agreement.
However, CESR recommends postpone a final decision on Chinese GAAP until there is more information on the application of the new Chinese accounting standards by Chinese issuers. CESR points out that the first complete reporting period under the new Chinese standards will only be for 2007 accounting periods.
If the Commission were minded to allow Chinese issuers to use Chinese GAAP when accessing EU markets, CESR would recommend the Commission consider accepting Chinese GAAP according to article 4 of the Commission Regulation on the mechanism, until such time as there is adequate evidence to enable a decision to be made under article 2 thereof.
CESR intends to undertake additional work to assess whether Chinese GAAP has been properly applied by Chinese issuers and will communicate publicly on the outcome of such work at a time when appropriate evidence can be made available to it by the Chinese authorities.