SEC eliminates reconciliation requirement for foreign companies; AICPA recommends SEC use international accounting standards.

In Nov. 2007, the Securities and Exchange Commission unanimously approved a proposal that no longer requires foreign registrants to reconcile their financial statements with U.S. generally accepted accounting principles, as long as they use international financial reporting standards as issued by the International Accounting Standards Board. The rule amendment will be effective 60 days after publication in the Federal Register and apply to financial statements for years ended after Nov. 15, 2007. The AICPA supported this change in congressional testimony in Oct.

The AICPA had recommended the SEC take comprehensive steps to harmonize U.S. and international financial reporting, including allowing American public companies to report financial results using international accounting standards. The SEC is weighing whether to allow U.S. firms to report financial results using international financial reporting standards rather than U.S. GAAP. The...