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SEC encourages IFRS use.

To promote international financial reporting standards (IFRSs), the SEC amended Form 20-F, granting a one-time exception to SEC-registered foreign private issuers that adopt IFRSs for the first time prior to or for financial year 2007 (; The change, which took effect May 20, 2005, permits such entities to file with the SEC two--rather than the previously required three--years of statements of income, changes in shareholder equity and cash flows.

This accommodation reflects the commission's support of the IFRSs, which numerous foreign governments, including the European Union, are adopting. As a result, many foreign companies must change their basis of accounting and file Form 20-E The accommodation retains current requirements for reconciling financial statement items to U.S. GAAP.
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Title Annotation:Highlights
Publication:Journal of Accountancy
Date:Jun 1, 2005
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