SEC proposal to accept financial statements under IFRS without reconciliation to U.S. GAAP

By Cydney Posner

For those who are interested, the SEC has posted its release proposing to accept financial statements prepared in accordance with the English-language version of the International Financial Reporting Standards (IFRS) as published by the International Accounting Standards Board without reconciliation to U.S. GAAP when contained in SEC filings of foreign private issuers. The proposal would be implemented through amendments to Form 20-F and conforming changes to Reg S-X and to other regulations, forms and rules under the Securities Act and the Exchange Act. Current requirements regarding the reconciliation to U.S. GAAP would not change for a foreign private issuer that uses a basis of accounting other than the English language version of IFRS as published by the IASB.

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