The Securities and EXchange Commission has issued a final rule on accepting financial statements prepared by foreign companies in accordance with International Financial Reporting Standards without reconciling them with U.S. GAAP.The SEC noted that it was accepting statements prepared in accordance with IFRS as issued by the International Accounting Standards Board, leaving out regional variations such as those approved by the European Union.
The foreign companies that take advantage of the rule will need to state in the notes to their financial statements that they are in compliance with IFRS as issued by the IASB, and provide an auditor’s report that gives an opinion on that compliance.
