IASB welcomes US SEC proposal to allow IFRS without reconciliation

21 June 2007

The IASB welcomed the decision of the US SEC to propose allowing non-US companies to file financial results according to International Financial Reporting Standards (IFRSs) as approved by the IASB.

The change would permit non-US companies to access US capital markets without reconciliation with US generally accepted accounting principles (GAAP) by 2009. The SEC emphasised that this proposal applies only to those companies filing financial statements according to full IFRSs.

“If approved, the rule will eventually reduce significantly the barriers to capital flows between countries using full IFRSs and the United States”, Sir David Tweedie, IASB chairman, commented. “Our ultimate aim at the IASB is to have a single set of accounting standards used worldwide. The SEC’s proposal is an important step in achieving that goal, but much work remains to be done.”

Press release

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