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Reuters: U.S. Official "Optimistic" on Global Accounting Changes

February 21, 2012, 08:00 AM
Filed Under: Regulatory News

Reuters reported a senior U.S. regulator was "optimistic" on about finding a framework for the world's top economy to use global book keeping rules for investors to compare cross-border companies.

According to the report, currently, more than 100 countries, including Europe, use accounting rules from the International Accounting Standards Board (IASB) and are waiting to see if the world's biggest capital market, with up to 12,000 listed companies, adopts them too.

"We are hopeful we can put forward a model," James Kroeker, chief accountant at the U.S. Securities and Exchange Commission (SEC), told Reuters.
Kroeker said he will make a proposal to SEC commissioners in "coming months" on how the United States could switch, which would spark changes in how the IASB deals with national bodies according to the report.

Kroeker also downplayed the notion of smaller firms being able to opt out indefinitely if U.S. adoption went ahead. "Having a model that works for everyone, even if there is a delay in timing, is important, otherwise you ingrain the idea that the smaller companies will never have to change and you end up with a two GAAP system permanently in the U.S.," he said.

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