CESR advice to the European Commission on Chinese, Japanese and US GAAP

The Committee of European Securities Regulators (CESR) has published its advice to the European Commission on the equivalence of Chinese, Japanese and US GAAP. CESR recommends the Commission find US GAAP equivalent to IFRS for use on EU markets. It also recommends the Commission consider Japanese GAAP equivalent, unless there is no adequate evidence of the Accounting Standards Board of Japan (ASBJ) achieving to timetable the objectives set out in the Tokyo Agreement. Finally, it recommends the Commission postpone a final decision on Chinese GAAP until there is more information on the application of Chinese accounting standards by Chinese issuers. CESR points out that the first complete reporting period under the new Chinese standards will be 2007. (View the Press Release or CESR’s Advice.)