Big decision from the SEC re accounting standards is effective immediately

The U.S. Securities and Exchange Commission today voted unimously to allow foreign companies to use international accounting standards instead of U.S. rules when filing data with the agency.

Foreign companies listed on U.S. exchanges will be able to choose between International Financial Accounting Standards (IFRS) or U.S. Generally Accepted Accounting Principles (GAAP), for fiscal years ending on or after Nov. 15.

I am sure that there will be many news stories about this decision. News about it is on Factiva and other databases.

Prior to this decision, foreign companies trading on U.S. exchanges had to use U.S. accounting standards, which added to the expense of being listed in the U.S. So, to be able to choose will be helpful to the companies. Will it be confusing to students and others? Probably. It will be interesting to see what the vendors do.. I imagine that some will convert the non U.S. GAAP filings to U.S. GAAP.

Rita