US and European securities regulators have agreed to move toward allowing European companies to list their shares in the United States without having to reconcile their accounts under US accounting standards.
The commission and the Securities & Exchange Commission reached agreement in Washington on a "roadmap" toward equivalence between International Financial Reporting Standards (IFRS) and US Generally Accepted Accounting Principles (GAAP).
In a statement today, the US Securities and Exchange Commission said: "The roadmap establishes a goal of eliminating the requirement as early as possible between now and 2009 at the latest".
The agreement will encourage more European companies to list their shares in the United States and help them raise capital from US investors.
Charlie McCreevy, who represented the Commission, welcomed the agreement, saying it was a sign of a common interest in reducing regulatory burdens and related costs on business.