EU: IFRS and GAAP convergence

The European Commission has published a report considering the convergence between International Financial Reporting Standards and Generally Accepted Accounting Principles in several countries including the US, China and Japan. The report begins:

"In July 2007 the Commission reported on the respective work timetables envisaged by national authorities of certain third countries for converging their national Generally Accepted Accounting Principles (GAAPs) towards International Financial Reporting Standards (IFRS). In this second report the Commission services now examine the actual progress made by third countries, firstly, on their convergence programmes and, secondly, towards eliminating any rules on reconciliation requirements that apply to Community issuers listed in the jurisdictions of these third countries. In preparing this report emphasis has been placed on assessing third country GAAPs which are being used by a large number of issuers listed on EU markets (as identified by CESR) and whose respective national authorities have clearly demonstrated their commitment towards IFRS."