SEC to scrap GAAP for looser Euro rules
The Securities and Exchange Commission says it's prepared to scrap U.S. accounting standards and let companies adopt looser International Financial Reporting Standards.
UPDATE: Making sense of the SEC's push for Euro accounting rules in the U.S.: Link to PhillyDeals column here.
ORIGINAL: The Securities and Exchange Commission, under pressure to ease any rule that makes it tougher for financiers to do business in the U.S. vs. less-restrictive Europe and other countries, has proposed to phase out Made-in-USA Generally Accepted Accounting Principles (GAAP) in favor of looser International Financial Reporting Standards. The switch would take place in stages, under the next President.
Is this really better for investors, or is it SEC chairman Christopher Cox's economic development program to help Wall Street win back lost business from London and other, looser financial centers? SEC release here.