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European Commission Allows US GAAP Filings…For Now

December 23, 2008
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The European Commission (EC) has extended the deadline allowing companies from seven countries, including the United States, to file financial statements in their local GAAP. The deadline was extended to 2011; the same year the SEC will determine whether to ratify its ruling requiring the adoption of IFRS.

When the EC made IFRS mandatory for its member states, they also enacted the original rule that allowed companies from the United States and other countries to file in their local GAAP. That rule was set to expire this year.The EC reiterated its support for IFRS and ruled that US GAAP (and other non IFRS GAAPs) would be granted equivalency with these stipulations:

  1. The United States and other countries granted IFRS equivalency had made a public commitment to converge with IFRS by 12/31/2011
  2. The United States and other countries granted IFRS equivalency had made a public commitment to adopt IFRS by December 31, 2011 or had reached a mutual recognition agreement with the EU by December 31, 2008

The complete text of the EC rule may be found here.

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