SEC moves closer to ending reconciliation impasse

The SEC and EU today moved one step closer to eliminating the need for
European listed companies with US listings to reconcile their accounts to US
GAAP.

Charlie McCreevy, the EU internal markets commissioner who is touring the US,
and SEC chairman Christopher Cox affirmed their commitment to abolishing
reconciliation from IFRS to the US standards.

Cox said that IFRS could produce significant benefits for US investors and
enhance the comparability of financial information around the world, and said
that the SEC wanted to eliminate the need for reconciliation by 2009 at the
latest.

‘The SEC is working diligently toward the goal of eliminating the existing
IFRS to US GAAP reconciliation requirement,’ said Cox.

Cox will meet with McCreevy again over the coming year to discuss progress on
matters related to the use of high-quality global accounting standards. There
will also be regular meetings over the next year between SEC and European
Commission officials to monitor progress.