SEC, CESR join forces on cross-Atlantic financial reporting standards

Both will use the other’s standards when reviewing filings by international firms

Applying Europe’s International Financial Reporting Standards (IFRS) to international firms operating in the US, and applying the US’s Generally Accepted Accounting Principles (GAAP) to international firms operating Europe, is the object of a plan being drawn up by the SEC and the Committee of Europeans Securities Regulators (CESR).

The SEC and CESR also announced plans to work together to modernize financial disclosure technology and regulatory platforms.

As part of their regular review of corporate filings, the SEC will review IFRS implementation in the US and the CESR will review GAAP implementation by US firms operating in Europe.

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