The US Securities and Exchange Commission (SEC) has finally agreed to drop the costly requirement after receiving what it says was “extensive and informative” comment to its proposal on the matter.
The SEC says the move is for the good of American investors, allowing them to “better analyse and get more readily comparable financial information from the US-registered foreign companies in which they invest”. The commission has also made quite a political point by only scrapping the reconciliation requirement for companies using the standards as approved by the International Accounting Standards Board. This means a company will still have to reconcile to US GAAP if it’s using international standards that have been tweaked to suit local conditions, diluting their influence. The aim is of course to eventually have one global set of standards for every company in the world. IASB chairman David Tweedie must be a very satisfied man. And so he should be – it’s about bloody time this happened! Image source
We use cookies on our website to give you the most relevant experience by remembering your preferences and repeat visits. By clicking “Accept”, you consent to the use of ALL the cookies.
This website uses cookies to improve your experience while you navigate through the website. Out of these cookies, the cookies that are categorized as necessary are stored on your browser as they are essential for the working of basic functionalities of the website. We also use third-party cookies that help us analyze and understand how you use this website. These cookies will be stored in your browser only with your consent. You also have the option to opt-out of these cookies. But opting out of some of these cookies may have an effect on your browsing experience.
Necessary cookies are absolutely essential for the website to function properly. This category only includes cookies that ensures basic functionalities and security features of the website. These cookies do not store any personal information.
Any cookies that may not be particularly necessary for the website to function and is used specifically to collect user personal data via analytics, ads, other embedded contents are termed as non-necessary cookies. It is mandatory to procure user consent prior to running these cookies on your website.