EU rules on waiver for companies to file in GAAP

EC formalises a waver on GAAP reconciliation, enabling companies to file financial reports in EU markets using GAAP

EU has formalised a waiver, enabling companies to file financial statements in European markets using US generally accepted accounting principles (GAAP) as well as the accounting standards of five other countries without reconciling them to International Financial Reporting Standards (IFRS).

The measures introduced by the EC declare US GAAP and accounting standards from Canada, China, Japan, South Korea and India 'equivalent' to IFRS as adopted in the EU, WebCPS reports.

Charlie McCreevy, European internal market and services commissioner, welcomed the measures. 'Today's adoption by the commission is a momentous step. It marks the culmination of important work spanning several years,' he said.

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