EU accepts local accounting standards from six countries

The EU has decided companies in six countries – USA, Japan, China, Canada,
South Korea and India – which have listings in the EU can continue to file
financial statements based on their domestic accounting standards.

Charlie McCreevy, EU internal market commissioner, told an accounting
industry conference yesterday the companies from the six countires would be able
to file their financial statements without the extra cost of producing an
additional set of accounts, The Guardian reports.

Without EU’s acceptance, companies from those six countries which were also
publicly listed in the 27-nation bloc would have to file a separate set of
results in line with the IFRS
accounting standards used in the EU, which was a costly process.

‘In the next few days, the (European) Commission will adopt two decisions
which determine that the GAAPs of the US, Japan, China, Canada, South Korea and
India are found to be equivalent to IFRS as adopted by the EU,’ McCreevy said.

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