On March 31, the Committee of European Securities Regulators (CESR) issued its final advice to the European Commission on the equivalence of U.S., Japanese, and Chinese GAAP to IFRS. CESR found U.S. to be equivalent to IFRS, and Japanese GAAP to also be equivalent to IFRS, (subject to the progress of convergence laid out in the “Tokyo Agreement”). CESR deferred its decision on equivalence of Chinese GAAP until a later date, since 2007 is the first year of reporting under the new Chinese GAAP.
In other international news, as noted in an article by Joe Kirwin in today's BNA's Daily Report for Executives, fair value accounting as may relate to volatility in credit markets was a subject of discussion at informal meetings of ECOFIN (the Economic and Financial Affairs Council of the European Union) earlier this month. Additionally, EU Internal Markets Commissioner Charlie McCreevy testified before a committee of the European Parliament on April 1 that fair value accounting issues and other accounting issues (consolidation accounting and risk disclosure) needed to be addressed regarding the recent market turmoil.