Paulson Announces First Stage of Capital Markets Action Plan

17 May 2007

U.S. Treasury Secretary Henry Paulson, announced initiatives to enhance U.S. capital markets competitiveness, focused on strengthened financial reporting and a more sustainable and transparent auditing profession. Initiatives announced include providing investors with a transparent and sustainable auditing system. The Treasury Department intends to charter a non-partisan committee to develop recommendations to consider options available.

Also, the Treasury intends to commission a rigorous analysis of the factors driving financial restatements and their impact on investors and the capital markets. Results of the analysis will be made public upon completion.

To enhance financial reporting the Treasury Department is supportive of the SEC and the Financial Accounting Standards Board's efforts to enhance financial reporting transparency and accessibility for investors.

Finally, the Treasury Department also supports the SEC's action to eliminate the U.S. GAAP reconciliation requirement by 2009 and the continued convergence of U.S. GAAP and IFRS.

Press release

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