Indian Companies ’ US arms bridge the GAAP – US to accept IFRS

America’s capital market regulator, the Securities and Exchange Commission, on November 15 decided to accept financial statements from foreign private issuers in the US without reconciliation to US GAAP if they are prepared using International Financial Reporting Standards (IFRS), which are followed in more than 100 countries. This will reduce the compliance cost of companies that want to go public in the US. “US accepting financial statements by foreign private issuers prepared as per IFRS is like the fall of Berlin Wall in the history of global financial integration. A uniform global accounting standard means that companies getting listed in different countries are not required to prepare different sets of financial statements. This would reduce compliance cost and enhance capital flows.