Press Release: Accounting: Commission Services report on convergence efforts of key partner countries

The Services of the European Commission prepared a Working Paper on third countries in the process of converging their national Generally Accepted Accounting Principles (GAAPs) towards International Financial Reporting Standards (IFRS) and on the progress towards the elimination of reconciliation requirements that apply to Community issuers listed in these countries. In the report the Commission Services took the view that Japanese GAAP and United States GAAP both meet the criteria of equivalence to IFRS. Chinese GAAP will continue to be accepted, but since it moved to IFRS for the first time in 2007, more information on its implementation is needed. On this basis, a review in the future, will take place. The Paper also concluded that an exemption until 2011 should be granted to Canada and South Korea in view of their ongoing efforts to move to IFRS in the near future. Within the coming weeks the Commission is expected to present legislative proposals to this effect.