Draft Technical advice on Equivalence of Certain third country GAAP and on description of certain third countries mechanisms of enforcement of financial information

Following receipt of a mandate from the European Commission, CESR publishes today for consultation its draft technical advice on equivalence of certain third countries' GAAP (Ref CESR/05-230), in which it finds the three third countries' GAAP, taken as a whole, equivalent to IAS/IFRS, subject to a number of remedies (described below). As such, CESR advises that there is no need for reconciliation between Canadian GAAP, Japanese GAAP and US GAAP and IFRS. However, CESR considers that a combination of qualitative and quantitative disclosures can address the significant differences that have been identified between the respective third countries' GAAP and IFRS, and that these measures should ensure better and more comparable information for EU investors. Finally, following the European Commissions' request for information, the draft advice includes a description of the mechanisms in Canada, Japan and the US for the enforcement of financial information. CESR's final advice must be submitted to the European Commission by 30 June 2005.
Please post your answer via the website by 27 May 2005