The Securities and Exchange Commission has voted to remove the requirement for non-U.S. companies to reconcile their financial statements to U.S. generally accepted accounting principles.

The SEC decided to accept financial statements prepared in accordance with International Financial Reporting Standards as issued by the International Accounting Standards Board without the need to reconcile them with U.S. GAAP. However, the SEC said the statements would not be accepted if they conformed to variations on IFRS, such as the ones implemented by the European Union, though European companies will get a two-year exemption on meeting IASB rules on accounting for derivatives.

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