HYPERLINK.docx
《HYPERLINK.docx》由会员分享,可在线阅读,更多相关《HYPERLINK.docx(55页珍藏版)》请在冰豆网上搜索。
HYPERLINK
Home|PreviousPage
SECConceptRelease:
InternationalAccountingStandards
SECURITIESANDEXCHANGECOMMISSION
17CFRPARTS230and240
[RELEASENOS.33-7801,34-42430;INTERNATIONALSERIESNO.1215]
FILENO.S7-04-00
[RIN:
3235-AH65]
INTERNATIONALACCOUNTINGSTANDARDS
AGENCY:
SecuritiesandExchangeCommission.
ACTION:
Conceptrelease;requestforcomment.
SUMMARY:
Withtheactivitiesandinterestsofinvestors,lendersandcompaniesbecomingincreasinglyglobal,theCommissionisincreasingitsinvolvementinanumberofforumstodevelopagloballyaccepted,highqualityfinancialreportingframework.Ourefforts,atbothadomesticandinternationallevel,consistentlyhavebeenbasedontheviewthattheonlywaytoachievefair,liquidandefficientcapitalmarketsworldwideisbyprovidinginvestorswithinformationthatiscomparable,transparentandreliable.Thatiswhywehavepursuedadualobjectiveofupholdingthequalityoffinancialreportingdomestically,whileencouragingconvergencetowardsahighqualityglobalfinancialreportingframeworkinternationally.Inthisrelease,weareseekingcommentonthenecessaryelementsofsuchaframework,aswellasonwaystoachievethisobjective.OneaspectofthisisseekinginputtodetermineunderwhatconditionsweshouldacceptfinancialstatementsofforeignprivateissuersthatarepreparedusingthestandardspromulgatedbytheInternationalAccountingStandardsCommittee.
DATES:
CommentsshouldbereceivedonorbeforeMay23,2000.
ADDRESSES:
PleasesendthreecopiesofyourcommentstoJonathanG.Katz,Secretary,SecuritiesandExchangeCommission,450FifthStreet,N.W.,Washington,D.C.20549-0609.Youalsomaysubmityourcommentselectronicallyatthefollowinge-mailaddress:
rule-comments@sec.gov.AllcommentlettersshouldrefertoFileNo.S7-04-00;youshouldincludethisfilenumberinthesubjectlineife-mailisused.Commentletterscanbeinspectedandcopiedinourpublicreferenceroomat450FifthStreet,N.W.,Washington,D.C.20549-0102.WewillpostelectronicallysubmittedcommentsonourInternetWebsiteat.
FORFURTHERINFORMATIONCONTACT:
SandraFolsomKinsey,SeniorInternationalCounsel,DivisionofCorporationFinanceat(202)942-2990,orD.J.Gannon,ProfessionalAccountingFellow,OfficeoftheChiefAccountantat(202)9424400.
SUPPLEMENTARYINFORMATION
I.INTRODUCTIONANDPURPOSEOFTHISRELEASE
Overthelasttwodecades,theglobalfinanciallandscapehasundergoneasignificanttransformation.Thesedevelopmentshavebeenattributable,inpart,todramaticchangesinthebusinessandpoliticalclimates,increasingglobalcompetition,thedevelopmentofmoremarket-basedeconomies,andrapidtechnologicalimprovements.Atthesametime,theworld'sfinancialcentershavegrownincreasinglyinterconnected.
Corporationsandborrowerslookbeyondtheirhomecountry'sbordersforcapital.AnincreasingnumberofforeigncompaniesroutinelyraiseorborrowcapitalinU.S.financialmarkets,andU.S.investorshaveshowngreatinterestininvestinginforeignenterprises.Thisglobalizationofthesecuritiesmarketshaschallengedsecuritiesregulatorsaroundtheworldtoadapttomeettheneedsofmarketparticipantswhilemaintainingthecurrenthighlevelsofinvestorprotectionandmarketintegrity.
Oureffortstodevelopaglobalfinancialreportingframeworkhavebeenguidedbythecornerstoneprincipleunderlyingoursystemofregulation--pursuingourmandateofinvestorprotectionbypromotinginformedinvestmentdecisionsthroughfullandfairdisclosure.Financialmarketsandinvestors,regardlessofgeographiclocation,dependonhighqualityinformationinordertofunctioneffectively.Marketsallocatecapitalbestandmaintaintheconfidenceoftheprovidersofcapitalwhentheparticipantscanmakejudgmentsaboutthemeritsofinvestmentsandcomparableinvestmentsandhaveconfidenceinthereliabilityoftheinformationprovided.
Becauseofincreasingcross-bordercapitalflows,weandothersecuritiesregulatorsaroundtheworldhaveaninterestinensuringthathighquality,comprehensiveinformationisavailabletoinvestorsinallmarkets.Westatedthisviewin1988,whenweissuedapolicystatementthatnotedthat"allsecuritiesregulatorsshouldworktogetherdiligentlytocreatesoundinternationalregulatoryframeworksthatwillenhancethevitalityofcapitalmarkets."1Wehaveappliedthisapproachinanumberofinstances,includingourrecentadoptionoftheInternationalDisclosureStandardsdevelopedbytheInternationalOrganizationofSecuritiesCommissions(IOSCO)fornon-financialstatementinformation.2OurdecisiontoadopttheInternationalDisclosureStandardswasbasedonourconclusionthatthestandardswereofhighqualityandthattheiradoptionwouldprovideinformationcomparabletotheamountandqualityofinformationthatU.S.investorsreceivetoday.
Currently,issuerswishingtoaccesscapitalmarketsindifferentjurisdictionsmustcomplywiththerequirementsofeachjurisdiction,whichdifferinmanyrespects.Werecognizethatdifferentlistingandreportingrequirementsmayincreasethecostsofaccessingmultiplecapitalmarketsandcreateinefficienciesincross-bordercapitalflows.Therefore,weareworkingwithothersecuritiesregulatorsaroundtheworldtoreducethesedifferences.Toencouragethedevelopmentofaccountingstandardstobeconsideredforuseincross-borderfilings,wehavebeenworkingprimarilythroughIOSCO,andfocusingontheworkoftheInternationalAccountingStandardsCommittee(IASC).Throughoutthiseffort,wehavebeensteadfastinadvocatingthatcapitalmarketsoperatemostefficientlywheninvestorshaveaccesstohighqualityfinancialinformation.
However,ensuringthathighqualityfinancialinformationisprovidedtocapitalmarketsdoesnotdependsolelyonthebodyofaccountingstandardsused.Aneffectivefinancialreportingstructurebeginswithareportingcompany'smanagement,whichisresponsibleforimplementingandproperlyapplyinggenerallyacceptedaccountingstandards.Auditorsthenhavetheresponsibilitytotestandopineonwhetherthefinancialstatementsarefairlypresentedinaccordancewiththoseaccountingstandards.Iftheseresponsibilitiesarenotmet,accountingstandards,regardlessoftheirquality,maynotbeproperlyapplied,resultinginalackoftransparent,comparable,consistentfinancialinformation.
Accordingly,whiletheaccountingstandardsusedmustbehighquality,theyalsomustbesupportedbyaninfrastructurethatensuresthatthestandardsarerigorouslyinterpretedandapplied,andthatissuesandproblematicpracticesareidentifiedandresolvedinatimelyfashion.Elementsofthisinfrastructureinclude:
∙effective,independentandhighqualityaccountingandauditingstandardsetters;
∙
∙highqualityauditingstandards;
∙
∙auditfirmswitheffectivequalitycontrolsworldwide;
∙
∙profession-widequalityassurance;and
∙
∙activeregulatoryoversight.
Inthisrelease,wediscussanumberofissuesrelatedtotheinfrastructureforhighqualityfinancialreporting.Wesolicitviewsontheelementsnecessaryfordevelopingahighquality,globalfinancialreportingframeworkforuseincross-borderfilings.WebelievetheseissuesshouldbeconsideredinthedevelopmentofanyproposalstomodifycurrentrequirementsforenterprisesthatreportusingIASCstandardsbecauseourdecisionsshouldbebasedonthewaythestandardsactuallyareinterpretedandappliedinpractice.
Werecognizethateachoftheelementsoftheinfrastructuremaybeatdifferentstagesofdevelopmentandthatdecisionsandprogressonsomeoftheseinfrastructureissuesmaybeindependentofthebodyofaccountingstandardsused.
II.ELEMENTSOFAHIGHQUALITYGLOBALFINANCIALREPORTINGSTRUCTURE
A.HighQualityAccountingStandards
Highqualityaccountingstandardsarecriticaltothedevelopmentofahighqualityglobalfinancialreportingstructure.Differentaccountingtraditionshavedevelopedaroundtheworldinresponsetovaryingneedsofusersforwhomthefinancialinformationisprepared.Insomecountries,forexample,accountingstandardshavebeenshapedprimarilybytheneedsofprivatecreditors,whileinothercountriestheneedsoftaxauthoritiesorcentralplannershavebeenthepredominantinfluence.IntheUnitedStates,accountingstandardshavebeendevelopedtomeettheneedsofparticipantsinthecapitalmarkets.
U.S.accountingstandardsprovideaframeworkforreportingthatseekstodelivertransparent,consistent,comparable,relevantandreliablefinancialinformation.EstablishingandmaintaininghighqualityaccountingstandardsarecriticaltotheU.S.approachtoregulationofcapitalmarkets,whichdependsonprovidinghighqualityinformationtofacilitateinformedinvestmentdecisions.
Highqualityaccountingstandardsconsistofacomprehensivesetofneutralprinciplesthatrequireconsistent,comparable,relevantandreliableinformationthatisusefulforinvestors,lendersandcreditors,andotherswhomakecapitalallocationdecisions.Highqualityaccountingstandardsareessentialtotheefficientfunctioningofamarketeconomybecausedecisionsabouttheallocationofcapitalrelyheavilyoncredibleandunderstandablefinancialinformation.
Whenissuerspreparefinancialstatementsusingmorethanonesetofaccountingstandards,theymayfinditdifficulttoexplaintoinvestorstheaccuracyofbothsetsoffinancialstatementsifsignificantlydifferentoperatingresults,financialpositionsorcashflowclassificationsarereportedunderdifferentstandardsforthesameperiod.Q