SEC moves closer to ending reconciliation impasse

The SEC and EU today moved one step closer to eliminating the need for European listed companies with US listings to reconcile their accounts to US GAAP.

Charlie McCreevy, the EU internal markets commissioner who is touring the US, and SEC chairman Christopher Cox affirmed their commitment to abolishing reconciliation from IFRS to the US standards.

Cox said that IFRS could produce significant benefits for US investors and enhance the comparability of financial information around the world, and said that the SEC wanted to eliminate the need for reconciliation by 2009 at the latest.

'The SEC is working diligently toward the goal of eliminating the existing IFRS to US GAAP reconciliation requirement,' said Cox.

Cox will meet with McCreevy again over the coming year to discuss progress on matters related to the use of high-quality global accounting standards. There will also be regular meetings over the next year between SEC and European Commission officials to monitor progress.