The Securities and Exchange Commission’s proposal to accept filings from some foreign companies without reconciliation to U.S. Generally Accepted Accounting Principles is drawing mixed reviews from the financial reporting community.
Under the current rule proposal, which drew more than 100 comment letters before the deadline last week, the SEC would accept filings from foreign private issuers in International Financial Reporting Standards, without the reconciliation to GAAP that historically has been required. Foreign private issuers would still need to prepare their statements in accordance with the English-language version of IFRS as published by the International Accounting Standards Board, rather than any specific nation’s interpretation of IFRS.
