Response to CESR's consultation on technical advice regarding equivalence of Third Country GAAP.
The Exchange has responded to CESR’s technical advice regarding a mechanism for determining the equivalence of the generally accepted accounting principles (GAAP) of third countries.
We urge CESR to take a pragmatic, flexible approach that takes account of the quality of the financial reports produced under local GAAPs, and provides an incentive for third countries to move towards convergence.
This is particularly important with respect to countries where there is a convergence programme in place which intends to eliminate the significant differences between the local GAAP and IFRS (or they intend to replace the local GAAP entirely with IFRS) - but where they will not be able to achieve such a goal by 1 January 2009.
Response to CESR's consultation on technical advice regarding equivalence of Third Country GAAP
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