US companies moved a step closer to being allowed to file financial results under international accounting standards after the Securities and Exchange Commission proposed a radical move away from US rules.
Wednesday's decision by the SEC increases the chances that companies across the globe will in the future prepare accounts using one common benchmark. Increasing acceptance of International Financial Reporting Standards (IFRS), which are the norm in Europe and some 80 other countries, is a sign that US regulators and policymakers are worried that divergent rules might hurt New York's position as a leading financial centre.
The convergence of accounting standards has long been advocated by company executives and audit firms as it would reduce costs and streamline operations for multinational groups. However, until recently, it had been stalled by strong opposition from the US.
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