SEC to accept IFRS from foreign companies...

The Securities and Exchange Commission (SEC) has tabled a proposal that would allow it to accept reports from foreign companies based in the US under the auspices of the international financial reporting standards (IFRS). Read original article.

Currently the SEC is attempting to quash the requirement which says that foreign companies must bring their financial statements in line with US generally accepted accounting principles (GAAP) by 2009.

The US is one of the only major financial centres in the world that has so far not embraced IFRS.

SEC chairman Christopher Cox said: "Global accounting standards would allow investors to draw better and more accurate comparisons among issuers around the world."

The US Financial Accounting Standards Board met with the International Accounting Standards Board in 2002 to attempt to harmonise IFRS with GAAP.

In 2002 the International Accounting Standards Board (IASB) and the US Financial Accounting Standards Board met in Connecticut and agreed to attempt to harmonise IFRS and GAAP.

And in 2006 the IASB issued a Memorandum of Understanding which featured a programme of topics on which convergence will be achieved by 2008.