Client Alert
| February 7, 2008
SEC Accepts IASB IFRS Financial Statements From Foreign Private Issuers Without U.S. GAAP Reconciliation
The U.S. Securities and Exchange Commission (“SEC”) has adopted rules that permit foreign private issuers to include in their filings with the SEC financial statements prepared in accordance with International Financial Reporting Standards (“IFRS”) as issued by the International Accounting Standards Board (“IASB”) without reconciliation to U.S. generally accepted accounting principles (“U.S. GAAP”). The SEC adopted the rules at its open meeting on November 15, 2007 and issued the final rule release on December 21, 2007. The new rules will become effective March 4, 2008.
By taking this long-awaited step of eliminating the U.S. GAAP reconciliation requirement, the SEC addresses one of the principal cost and timing impediments to foreign companies engaging in public offerings in the United States and listing securities on U.S. exchanges. This development should also facilitate acquisitions by foreign companies of U.S. public companies.
This memorandum is intended only as a general discussion of these issues. It is not considered to be legal advice. We would be pleased to provide additional details or advice about specific situations. For additional information on this important topic, please feel free to call upon your Dewey & LeBoeuf relationship partner. No part of this publication may be reproduced, in whole or in part, in any form, without our prior written consent.
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