A final rule published January 4 in the Federal Register by the U.S. Securities and Exchange Commission permits foreign companies to file financial statements prepared according to International Financial Reporting Standards (IFRS) with the SEC without reconciling the statements with U.S. Generally Accepted Accounting Principles.

SEC officials note in the preamble to the final rule that the International Accounting Standards Board, London, is still working on fleshing out international rules for accounting for insurance and reinsurance contracts, but that the SEC decided to approve the changes without waiting for negotiators to come to an agreement, saying “…we do not believe that the IFRS standards in these or other discrete areas should delay our full acceptance of IFRS as issued by the IASB without a U.S. GAAP reconciliation.” The notice in the Federal Register also contains SEC comments on international insurance regulation.

SEC Notes Lack of International Insurance Standards (National Underwriter 1/4/08)

January 15, 2008