As widely expected, the Securities and Exchange Commission has abolished a long-standing requirement that overseas companies listed on U.S. exchanges reconcile their financial statements to U.S. Generally Accepted Accounting Principles—a crucial step toward adopting a single, globally accepted set of accounting rules.
The Commission voted last week to end its reconciliation requirement for foreign issuers that submit financial statements using International Financial Reporting Standards as issued by the International Accounting Standards Board. Issuers using other accounting standards, including IFRS “tweaked” by individual nations, will still need to file the reconciliation statement.
