Summary

GAO reviewed the Securities and Exchange Commission's (Commission) new rule on acceptance from foreign private issuers of financial statements prepared in accordance with International Financial Reporting Standards (IFRS) without reconciliation to U.S. generally accepted accounting principles (GAAP). GAO found that (1) the rule allows foreign private issuers to file with the Commission financial statements prepared in accordance with the IFRS without reconciliation to GAAP as used in the United States to help reduce the disparity between accounting and disclosure practices of the United States and other countries; and (2) the Commission complied with the applicable requirements in promulgating the rule.