Stock Exchange:

Accounting Principles: We need information. Can you help?

IFAC Member: Yes

Stock Exchange: The Buenos Aires Stock Exchange requires domestic companies to follow Argentine GAAP. Foreign companies may follow Argentine GAAP. Alternatively, they may follow IAS or their national GAAP, in which case they must include a reconciliation to Argentine GAAP.

Accounting Principles: Two levels of accounting standards exist in Argentina: those adopted by the (local) Consejos Profesionales de Ciencias Economicas on the basis of the Vtechnical resolutionsV of the Federacion de Consejos and those adopted under legal authority, primarily developed by the Comision Nacional de Valores (for listed companies) and specialised industry standards developed by regulatory agencies such as the Central Bank of the Argentine Republic. Both the Federacion and the Comision are planning to base most (but not all) of their accounting standards on IAS.

IFAC Member: No

Stock Exchange:

Accounting Principles: The Government of Armenia decided in Decree 740 (26 November 1998) to adopt IAS. Most of the Standards are expected to be adopted by the Ministry of Finance by the end of 1999, with the remaining Standards adopted by 30 June 2000. A new Association of Accountants and auditors of the Republic of Armenia is also being organised.

IFAC Member: Yes

Stock Exchange: The Australian Stock Exchange allows foreign issuers to use Australian GAAP (that is, standards adopted by the Australian Accounting Standards Board) or another set of accounting standards acceptable to ASX. A note to the relevant listing rule cites International Accounting Standards as the only example of "acceptable" non-Australian GAAP. ASX policy is to accept national standards that are based on IAS (such as those of Hong Kong, Singapore, and Malaysia) or that are largely compatible with IAS (such as those of the U.K.) The Australian Stock Exchange has allowed debt issuers to use U.S. GAAP without reconciliation to Australian GAAP, although the Australian Securities and Investments Commission has lately requested U.S. issuers to follow Australian GAAP. Domestic issuers must follow Australian GAAP.

Accounting Principles: New arrangements for setting Australian accounting standards came into effect on 1 January 2000, with the enactment of part of the legislative reform package contained in the Corporate Law Economic Reform Program Act 1999.

Under the new arrangements, a new body, the Financial Reporting Council (FRC) is established with the responsibility for the broad oversight of the accounting standard setting process for the private, public and not-for-profit sectors. It will set the broad strategic direction for the Australian Accounting Standards Board (AASB), approve and monitor its priorities and business plan, and oversee its operations. The FRC also has a statutory obligation to monitor the development of international accounting standards and accounting standards that apply in major international financial centres, to further the development of a single set of accounting standards for world-wide use with appropriate regard to international developments, and to promote the adoption of international best practice accounting standards in the Australian accounting standard setting process if doing so would be in the best interests of both the private and public sectors in the Australian economy. The FRC is monitoring and assessing the work of the IASB, national accounting standard setting bodies in Canada, France, Germany, Japan, New Zealand, the United Kingdom and the United States of America. It is also monitoring the work of the European Commission.

The AASB is a body corporate with power to formulate accounting standards for the purposes of the Corporations Law and for the public and not-for-profit sectors, and to participate in and contribute to the development of a single set of accounting standards for world-wide use. The legislation provides that the AASB may distribute the text of a draft international accounting standard (whether or not modified to take account of the Australian legal or institutional environment) for the purposes of consultation. Under the revised standard setting arrangements, the AASB is responsible for employing its own technical and administrative support staff. In addition to the FRC statutory obligation to monitor the development of international accounting standards and accounting standards that apply in major international financial centres, the AASB has stated in Policy Statement 6 “International Harmonisation Policy” which was issued in 1996 that to achieve the AASB’s objective of pursuing the development of an internationally accepted set of accounting standards, the AASB will, in the interim, work towards ensuring that compliance with Australian accounting standards will result in compliance with IASs.

IFAC Member: Yes

Stock Exchange: Wiener Bourse (the Vienna Stock Exchange) requires all domestic and foreign companies listed on the A-Market and the Austrian Growth Market to submit consolidated financial statements that follow either IAS or US GAAP starting April 2001. Other listed companies (domestic and foreign) not on the A-Market or AGM may use IAS or US GAAP consolidated financial statements.

Accounting Principles: The Austrian commercial code prescribes accounting practices for Austrian companies and requires compliance with the EC Directives. In January 1999, the Parliament of Austria enacted a law that allows all Austrian companies to follow IAS or another internationally recognised body of accounting standards, rather than the Austrian commercial code accounting, in preparing their consolidated financial statements for domestic reporting purposes, provided that:
the statements also comply with the EC Directives;
the statements disclose the basis of accounting used and any significant differences from Austrian law; and the information value is deemed at least equivalent to that that would result from complying with Austrian law, and the auditorVs report so states.

The law is effective for financial years beginning 1 January 1998 or later.

IFAC Member: Yes

Stock Exchange:

Accounting Principles: We need information. Can you help?

IFAC Member: Yes

Stock Exchange:

Accounting Principles: By law, banks in Bahrain are required to conform to IAS.

IFAC Member: Yes

Stock Exchange: All companies listed on the Chittagong Stock Exchange and the Dhaka Stock Exchange must follow International Accounting Standards.

Accounting Principles: The Institute of Chartered Accountants of Bangladesh (ICAB) has a programme to adopt IAS as Bangladesh Accounting Standards. In April 2001, the ICAB had adopted 23 IAS (of which 19 are currently effective) out of total 40 IAS (of which 36 are currently effective).

The Bangladesh Securities and Exchange Commission requires issuers of listed securities to prepare financial statements in accordance with the requirements laid down in the Regulation and the International Accounting Standards as adopted by the Institute of Chartered Accountants of Bangladesh.

The Bangladesh SECVs Public Issue Rules, 1998, require that the financial statements included in a prospectus or offering document be prepared in accordance with IAS.

IFAC Member: Yes

Stock Exchange:

Accounting Principles: Effective January 1, 1996, The Institute of Chartered Accountants of Barbados (ICAB) fully adopted all International Accounting Standards as issued by IASB as the "benchmark" for generally accepted accounting principles in Barbados. Previously, many of those standards had been adopted on a selective basis as approved by the Council of the Institute.

IFAC Member: Yes

Stock Exchange:
Brussels Stock Exchange allows IAS financial statements. Domestic companies with significant foreign operations or foreign capital sources may follow IAS as well for consolidated financial statements.
EASDAQ (European Association of Securities Dealers Automated Quotation) Exchange allows IAS for all listed companies. EASDAQVs rulebook published in October, 1996 states that annual and quarterly financials of listed companies should be in accordance with one of the following standards:

• International Accounting Standards;
• the accepted standards of the issuerVs home state (if the issuer is incorporated in, or has registered offices, in the European Union) with a reconciliation to International Accounting Standards; or
• US GAAP (issuers whose financial instruments were first, and continue to be, traded on NASDAQ, and issuers intending to seek admission of their financial instruments to trading on a US Stock Exchange or securities market, or to offer them in the USA).

IFAC Member: No

Stock Exchange:

Accounting Principles: One of seven French-speaking West African countries (including Benin, Burkina Faso, Ivory Coast, Mali, Niger, Senegal, and Togo) that in 1998 signed a business harmonisation treaty that includes creation of a new accounting plan -- Systeme Comptable Ouest-Africain (Plan SYSCOA). SYSCOA is not based on IAS.

IFAC Member: Yes

Stock Exchange:

Accounting Principles: In Bolivia, the National Technical Accounting and Auditing Committee (Consejo Tecnico Nacional de Auditoria y Contabilidad) within the Society of Auditors of Bolivia (Colegio de Auditores de Bolivia) is responsible for setting accounting and auditing standards for the profession.

IFAC Member: Yes

Stock Exchange:

Accounting Principles: IAS are recommended, although there is no legal requirement to apply them.

IFAC Member: Yes

Stock Exchange: All companies listed on the Rio de Janeiro Stock Exchange and Sao Paulo Stock Exchange must submit financial statements that follow Brazilian GAAP.

Accounting Principles: The Brazilian Institute of Accountants [IBRACON] issues accountants standards influenced by IAS. The introduction to the standards handbook states:

"IBRACON is a member of the IFAC and has taken an active part in the projects undertaken by the two entities. However, IBRACON itself has issued a series of pronouncements concerning accounting and audit that are in resonance with BrazilVs own reality.
. . .[the IAS pronouncements] do not take precedence of those of IBRACON because, among other reasons, there is a similarity between them. The publication of the IASVs furnishes a wider source of consultation and study, and should contribute to the improvement and perfecting of our own standards of accounting and auditing.""

The Securities Commission Law of 1976 established a Brazilian Securities Commission which has the power to issue regulations regarding financial accounting standards.

IFAC Member: No

Stock Exchange:

Accounting Principles: The Brunei Darussalam Institute of Certified Public Accountants has begun to develop accounting standards.

IFAC Member: Yes

Stock Exchange: National accounting standards are obligatory for all companies listed on the Bulgarian Stock Exchange.

Accounting Principles: According to the Accounting Law (enacted in 1991), the Council of Ministers approves National Accounting Standards (NAS) and a National Chart of Accounts in compliance with IAS, which are obligatory for all accounting entities. The Chart of Accounts has been in effect since April 1, 1991 and NAS have been in effect since January 1, 1993. NAS provide for conformity with National Accounting Legislation, uniform application of international accounting terminology, and application of IAS in accordance with specific accounting problems in Bulgaria. For issues that are not treated in NAS, the principles of IAS should be applied. As of January 1, 2000 the Institute of Certified Public Accountants in Bulgaria, upon request of the Ministry of Finance, shall develop and update the NAS, the corresponding methodology and guidelines. Up to 1 February 2000, 35 NAS have been approved (including those without analogue in IAS). The Institute of Certified Public Accountants in Bulgaria has also approved 20 National Audit Standards in compliance with International Audit Standards.

IFAC Member: No

Stock Exchange:

Accounting Principles: One of seven French-speaking West African countries (including Benin, Burkina Faso, Ivory Coast, Mali, Niger, Senegal, and Togo) that in 1998 signed a business harmonisation treaty that includes creation of a new accounting plan -- Systeme Comptable Ouest-Africain (Plan SYSCOA). SYSCOA is not based on IAS.

IFAC Member: No

Stock Exchange:

Accounting Principles: In 1998 Cambodia established a new accounting standards committee that intends to issue standards based on IAS.

IFAC Member: Yes

Stock Exchange: For the Toronto Stock Exchange and Alberta Stock Exchange, all registrants must submit financial statements that follow Canadian GAAP. Pursuant to British Columbia law, the Vancouver Stock Exchange allows foreign companies to follow their national GAAP with a reconciliation to Canadian GAAP in the notes. Pursuant to Quebec law, the Montreal Stock Exchange allows foreign companies to use IAS or US, UK, or Australian GAAP, with advance permission and with a reconciliation to Canadian GAAP in the notes, because those GAAPs are generally comparable to Canadian GAAP. National GAAP from other countries may not be used.

The President and Chief Executive Officer of the Toronto Stock Exchange issued a statement that said: "It is therefore desirable, not only that Canadian companies disclose the fact that they have followed accounting principles generally accepted in Canada in preparing their financial statements, but also that they disclose conformity with, or identify deviations from, International Accounting Standards." Many public Canadian companies do so.

Accounting Principles: The Canada Business Corporations Act and various provincial corporation acts require financial statements to be prepared in conformity with generally accepted accounting principles. By regulation, GAAP is defined as the principles set out in the Handbook of the Canadian Institute of Chartered Accountants. For public companies, several of the provincial securities commissions have supplemented the CICA Handbook with additional disclosure provisions. Accounting Standards in the CICA Handbook are set by the Accounting Standards Board (AcSB) of the CICA. AcSBVs policy is to conform Canadian GAAP to IAS unless there is a fundamental disagreement or particular circumstance that warrants a different approach. CICA has an Emerging Issues Committee that provides consensus interpretations of CICA standards.

IFAC Member: No

Stock Exchange: All companies listed on the Cayman Islands Stock Exchange, including domestic, may follow IAS or US, Canadian, or UK GAAP, or other equivalent standards acceptable to the Exchange. The CSX specializes in mutual fund and debt security listings.

Accounting Principles: We need information. Can you help?

IFAC Member: Yes

Stock Exchange: The Santiago Stock Exchange requires domestic listed companies to submit financial statements that follow Chilean accounting principles. Foreign listed companies must follow their own national principles and include a reconciliation to Chilean GAAP.

Accounting Principles: Accounting standards are set by the Chilean College of Accountants ("CCC"). Their pronouncements are known as Technical Bulletins. If no Chilean standard exists, Technical Bulletin No. 56, approved on September 23, 1997, calls for the use of International Accounting Standards, effective January 1, 1998.

IFAC Member: Yes

Stock Exchange: Shanghai or Shenzen Stock Exchanges
Companies that have issued B-Shares [these trade in China and overseas] must follow IAS.
Companies that have issued H-Shares [these trade in Hong Kong only] may follow either IAS or Hong Kong accounting standards.
Companies that have issued A-Shares [these trade in China only] must follow accounting standards promulgated by the PRC Ministry of Finance.

Accounting Principles: Under the Accounting Law enacted in 1985 and revised in 1993, the Division of Administration of Accounting Affairs (DAAA) of the Ministry of Finance is responsible for setting accounting standards that all companies must follow. In 1993, the DAAA published "Accounting Standards for Business Enterprises" (ASBE), which sets out the general framework of accounting in China. Subsequently, DAAA has been developing specific accounting standards and regulations under the ASBE. Members of the Chinese Institute of CPAs must state in their audit reports whether or not the reporting enterprise has complied with ASBE. In 1998 an Accounting Standards Committee was created within the DAAA. That committee has primary responsibility for developing the standards, subject to MOF approval.

Listed companies must also comply with disclosure regulations issued by the China Securities and Regulatory Commission.

China has set a target for all enterprises to be subject to an independent CICPA audit by the year 2000. China has announced a policy of developing new Accounting Standards for Business Enterprises in harmony with IAS.

IFAC Member: Yes

Stock Exchange:

Accounting Principles: Colombian General Accepted Accounting Principles (Colombian GAAP) are currently included in Decree 2649 of 1993. This decree was issued by the Executive.

In addition, Law 43 of 1990 (Article 29) created the Consejo Técnico de la Contaduría Pública. The Consejo has several functions, including researching new accounting and auditing principles. However, its pronouncements are not mandatory for accountants. Nor are they bindong on the government or the Congress in their function to establish general standards.

IAS are not formally adopted as Colombian standards or used as the basis for Colombian standards. Colombia generally tends to take into account US GAAP and FASB Rules when new regulations are issued.

As a general principle, all commercial companies in Colombia must adapt their financial statements to Decree 2649. However, article 136 allows a company to use a different but "comprehensive set of standards", if that company follows certain rules of disclosure in cases of incompatibility with Colombian GAAP.

The Securities Superintendency (the Colombian securities regulatory authority) has the authority (according to Decree 2739 of 1991, Article 3; Decree 2115 of 1992, Article 4; Decree 2649 of 1993, Article 137; and Decree 2337 of 1995, Article 5) to set special accounting rules that must be applied by issuers that have made a public offering in Colombia. The Superintendency has issued External Circular 2 of 1998 setting those special rules. The Securities Superintendency did not establish any different rules for foreign companies listng their securities on a Colombian exchange. Consequently, foreign companies must follow the same standards as Colombian companies to sell their securities in Colombia. However, because IAS Standards are generally regarded are "stronger" than the SuperintendencyVs rules, there would not likely be a practical problem for a foreign company to use IAS in financial statements published in Colombia.

IFAC Member: Yes

Stock Exchange:

Accounting Principles: Accounting standards are established by the Institute of Public Accountants of Costa Rica. In August 2001, the Board of Directors of the "Colegio de Contadores Públicos of Costa Rica" stated that from 1 October 2001, International Accounting Standards and SIC Interpretations are mandatory in the country. [Revised: 2001/11/26]

IFAC Member: Yes

Stock Exchange: Zagreb Stock Exchange requires IAS financial statements for both domestic and foreign enterprises.

Accounting Principles: The Croatian Accounting Act fully recognises IAS for both domestic and foreign companies. To be used in Croatia, IAS have to be first printed in the National Gazette of the Republic of Croatia.

IFAC Member: Yes

Stock Exchange: Regulation 78 of the Cyprus Stock Exchange requires that IAS be followed by all listed companies, both foreign and domestic.

Accounting Principles: The Institute of Certified Public Accountants of Cyprus adopts all IAS, and has done so since 1981. UK accounting standards are looked to if IAS do not address a particular issue.

IFAC Member: Yes

Stock Exchange: The Prague Stock Exchange requires audited financial statements compiled in accordance with IAS, including annexes to the financial statements, for the year preceding the filing of a listing application. The Exchange also requires three years of audited financial statements prepared in accordance with Czech accounting standards. A prospectus requires audited financial statements prepared in accordance with IAS. In addition, an Issuer is required to file quarterly financial information (although not necessarily in accordance with IAS) and audited annual financial statements prepared in accordance with IAS.

Accounting Principles: Czech accounting standards (CAS). Financial statements prepared using IAS are required for publicly listed enterprises.

IFAC Member: Yes

Stock Exchange: Copenhagen Stock Exchange Copenhagen Stock Exchange allows Danish companies to use IAS or US or UK GAAP with a reconciliation to Danish GAAP. Foreign companies may follow their national GAAP with a reconciliation to Danish GAAP or, if their own national law allows the use of IAS, US, or UK GAAP, the foreign company may use that GAAP without reconciliation to Danish GAAP.

Accounting Principles: Danish accounting principles are contained in the Annual Accounts Act. The Law implements the EU Fourth and Seventh Directives. Banks, insurance companies, and certain mortgage and loan institutions follow in principle the Annual Accounts Act by separate industry laws specific for these types of institutions. As no explicit Danish accounting framework exists, guidance is sought in International Accounting Standards (IAS). Since 1976 when the Danish Institute of State-Authorized Public Accountants (FSR) became member of IFAC, FSR has supported IAS.

A translation into Danish of the IASB Framework has been supported, indicating an implicit recognition of the IASB Framework. FSR has issued all IASB Standards with a preface prepared by the accounting committee of the FSR. This preface includes comparison of all significant differences from the Accounting Law and accounting practices generally accepted in Denmark. A translation project of IAS into Danish has been contracted out to KPMG Denmark with written permission of the IASB. This projected is expected to be finalised by end of 2001.

As a supplement to the Accounting Law, accounting standards are issued by FSR. The development of accounting standards actually sets the details of the present Danish accounting disclosure. Generally, Danish accounting standards are prepared on the basis of IAS and do not deviate significantly from IAS standards and are considered to be a supplement the Accounting Law in force.

On 10 January 2001, the Parliament put forward a draft to a new Accounting Law. Accounting principles and disclosure rules in the new draft Act are based on IAS. The new draft Act is applicable to all companies but the scope of rules applicable to each enterprise depends on the size of the company. Rules are written into different classes of companies (A to D). Very small companies will be in class A and listed companies in D. Rules will be less demanding in class A and extensive for class D companies. Rules for listed companies (D companies) takes consideration of the EU IAS Strategy 2005. Rules are expected to be in compliance IAS when the law is approved by Parliament which is announced to take place mid 2001. The new Law will come into force by 1 January 2002.

IFAC Member: Yes

Stock Exchange:

Accounting Principles: In September 1999, the Board of Directors of the Dominican Republic Institute of Certified Public Accountants (Instituto de Contadores Publicos Autorizados de la Republica Dominicana) adopted International Accounting Standards as the accounting standards of the Dominican Republic effective 1 January 2000. The Board acted pursuant to its authority under Law 633 of 16 June 1944, which created the Institute and gave it power to establish accounting standards.

IFAC Member: Yes

Stock Exchange:

Accounting Principles: In 1996 the National Federation of Accountants of Ecuador ("FNCE") passed resolution 09-01-96, which states that effective January 1,1996, the application of IAS is mandatory in Ecuador. The FNCE has assumed the responsibility for regulating and clarifying the application of IAS in Ecuador.

IFAC Member: Yes

Stock Exchange: All companies listed on the Cairo Stock Exchange must follow IAS.

Accounting Principles: Applying IAS is mandatory for all companies reporting to the Capital Market Authority under the provisions of Law 95 (Capital Markets Law) in Egypt. This includes all companies listed on the Cairo Stock Exchange as well as all specialised investment companies. Commencing 1998, most other companies in Egypt are required to comply with Egyptian Accounting Standards, which are, in all material respects, the same as IAS. Egyptian Accounting Standards are issued by the Egyptian Society of Accountants and Auditors (ESAA) and are, essentially, Arabic versions of IAS. The preface to Egyptian Accounting Standards states: "The Egyptian Accounting Standards (EAS) have been prepared to comply with the International Accounting Standards (IAS) issued by the International Accounting Standards Committee (IASC) except for certain minor differences to adapt the Standards to the Egyptian economic environment." EAS have also been adopted as part of the Uniform Accounting System that forms the basis of financial reports prepared by government-owned enterprises.

IFAC Member: Yes

Stock Exchange:

Accounting Principles: In September 1999, the Consejo de Vigilancia de La Contaduria Pública y Auditoria stated that IAS should be used when preparing financial statementes.

In April 2000, Law 826 reformed the Código de Comercio (Commercial Code) and reafirmed that financial statements should be prepared with standard accounting issued by the Consejo or IAS.

IFAC Member: No

Stock Exchange: Tallinn Stock Exchange regulations, section 4.4.4., require that an issuerVs financial statements comply with International Accounting Standards. In some cases the Accounting Standards Board of Estonia will limit the choices under IAS.

Accounting Principles: The Estonian Accounting Law (effective date 01.01.95) requires that the financial statements of all companies be prepared in accordance with Estonian GAAP. By law, the Estonian Accounting Standards Board, an autonomous government unit, is responsible for standard-setting in Estonia. The guidelines issued by the Board are generally in conformity with IASC and must be applied when drawing up the separate and consolidated accounts. In cases where IASC allows for alternative treatments, a single treatment is prescribed by Estonian GAAP. To date, the Board has approved 20 guidelines. A bound volume, including English translations, is published yearly.

A conceptual framework is set out in the Estonian Accounting Law. This generally results in automatic convergence with new IASCVs standards or interpretations. The Estonian Accounting Standards Board is committed to harmonising its standards with international standards. The Board closely monitors developments in the IASC process and the work of other standard-setters such as FASB, ASB, AASB, CICA, and FRSB, that is, standard-setters concerned with developing standards under a cohesive and consistent conceptual framework.

IFAC Member: Yes

Stock Exchange: Listed Companies are required to comply with disclosure requirements of the 1983 Companies Act, and all accounting standards approved by the Fiji Institute of Accountants (FIA). Interim statements are required, and annual financial reports must be published within four months of balance sheet date. Additional disclosure requirements relating to directorsV interests also apply.

Accounting Principles: The Accounting Standards Committee of the FIA adopts Fiji accounting standards. The Committee has decided to adopt most International Accounting Standards as Fiji standards with effect for reporting periods beginning on or after 1st January 2000. Adoption of IAS 12, 35, 36, and 37 will be postponed for a year or so. Certain other IAS not deemed to have applicability in Fiji will not be adopted. Small reporting entities are exempted from complying with certain standards, but are encouraged to do so. Where International Accounting Standards permit alternative treatments, all alternatives are not necessarily allowed by the FIA.

National government has agreed through the Public Sector Finance Act that all public sector enterprises must conform to generally accepted accounting practices.

IFAC Member: Yes

Stock Exchange: Foreign companies listed on the Helsinki Exchanges may follow IAS or US or UK GAAP or their national GAAP, with advance permission of the regulatory authority and with reconciliation to Finnish GAAP. Also, domestic listed companies may follow IAS if more than 50% of the shares are owned by foreigners or if the company is listed in an OECD country outside the European Economic Area, again with reconciliation to Finnish GAAP.

Accounting Principles: The Finnish Accounting Board, an agency of the government Ministry of Trade and Industry, develops accounting principles under the Accounting Act of 1992. Also, the Association of Authorised Public Accountants has an accounting committee that advises the Board. Finnish accounting standards generally are based on IAS.

IFAC Member: Yes

Stock Exchange: Paris Stock Exchange allows IAS financial statements for foreign listed companies. Companies based in the EU are also allowed to follow their national accounting standards. Domestic companies may follow IAS for consolidated financial statements.

Accounting Principles: Under a law enacted 6 April 1998, listed French companies are allowed to elect to follow IASC Standards in their consolidated financial statements for domestic reporting purposes. That law permits companies to elect US GAAP until 2002, provided that an official translation into French is published and approved. However, before French companies can elect either IASC Standards or US GAAP, the Comité de la Réglementation Comptable (CRC) must vote to adopt IAS. This is not yet in process of being done and is not likely to happen before the end of 1999.

Publicly traded companies are subject to the requirements of the Commission des Opérations de Bourse (COB), the French securities regulatory agency. The COBVs regulatory position, published in COBVs January 1999 monthly Bulletin, is that listed companies still have to use French GAAP as their primary accounting framework, but they can publish supplemental financial statements in accordance with IAS if they wish to do so.

Stock Exchange:

Accounting Principles: On 5 February 1999 Parliament of Georgia passed the law on Regulation of Accounting and Reporting. The law recognizes the International Accounting Standards as promulgated by the International Accounting Standards Committee to be compulsory for the private sector (for Joint Stock Companies and Limited Liability Companies). The law created the Accounting Standards Commission of Georgia and transferred the function of regulating the accounting and reporting from the Ministry of Finance to it. One of the main functions of the Commission is to approve the Georgian text of the IASs for implementation. In addition the Commission is authorized to approve IAS interpretations and temporary accounting standards for which IASs have not been issued yet. (For example, VAT related issues, Insurance system or simplified accounting rules for the small business). Though the Commission is named as "existing at the Parliament of Georgia" it is not funded from the State budget. The members of the Commission are working on the voluntary basis. The Commission is not engaged in translation of the IASs or developing temporary standards. The meetings of the Commission are held periodically whenever some issue needs to be discussed. The Commission analysis and evaluates the target standard in regard of its correspondence to the original text. The materials to be considered by the Commission (Translation of IASs, sample chart of accounts and etc) should be prepared by professional organization. This function is implemented by the Georgian Federation of Professional Accountants and Auditors so far.

The Accounting Standards Commission is comprised of 9 members including each representative from National Securities Commission, Ministry of Finance and Audit Activities Council. The rest of the members represent the professional organization, commercial bank, audit firm, academic sector and private business.

IFAC Member: Yes

Stock Exchange: Deutsche Börse, Frankfurt Stock Exchange, Bavarian Stock Exchange, and Stuttgart Stock Exchange all allow IAS financial statements.
Domestic companies may follow IAS as well for consolidated financial statements.

Accounting Principles: A 1998 law, aimed at making the capital markets in Germany more competitive, allows companies whose securities are publicly traded to prepare their consolidated financial statements, for domestic reporting purposes, using International Accounting Standards or US GAAP rather than German GAAP.

In 1998, Germany also created a new, independent German Accounting Standards Committee (Deutsches Rechnungslegungsstandards Committee or DRSC), based in Berlin.

Stock Exchange:

Accounting Principles: Accounting standards are established by the Institute of Chartered Accountants (Ghana). Tbose standards are based on IAS with minor modifications.

Stock Exchange:

Accounting Principles: Accounting principles are set out in Company Law 2190/1920, as amended, which generally follows the guidelines of IASC. The government-sponsored Institute of Sworn-in Accountants (Syndesmos Orkoton Logiston, or SOL) has a committee, the National Accounting Standards Board (Ethniko Symboulio Loeistikis, or ESYL), that publishes non-binding guideliness on accounting issues.

Stock Exchange:

Accounting Principles:The Guatemalan Institute of Public Accountants and Auditors ("IGCPA") issues accounting standards based in large part on both Mexican GAAP and IAS. Guatemala does not default to IAS in the absence of a domestic standard.

Stock Exchange:

Accounting Principles: No information Can you help?

Stock Exchange:

Accounting Principles: In September 1997, the Order of Professional Accountants of Haiti (OCPAH) passed a resolution adopting for Haiti the International Accounting Standards, subject to Haitian laws.

Stock Exchange:

Accounting Principles: The Honduran College of University Professionals in Public Accounting ("COHPUCP") fully adopted IAS in its meeting on May 26, 1996. Both IAS and International Standards of Auditing were mandatorily applicable in Honduras effective January 1, 1997.

Stock Exchange: Stock Exchange of Hong Kong permits companies that have a primary listing on the main board of the Stock Exchange of Hong Kong (SEHK) to adopt IAS instead of Hong Kong GAAP. They will be required to explain any significant differences with Hong Kong GAAP, including a reconciliation of the financial effect on net profit or loss. Overseas-incorporated issuers and applicants that have or will have a secondary listing on the SEHK are permitted to follow US GAAP.

Accounting Principles: The Companies Ordinance contains detailed provisions governing the form and content of financial statements, and supporting records.

The Hong Kong Society of Accountants (HKSA) has a Financial Accounting Standards Committee, which issues Statements of Standard Accounting Practice (SSAP). SSAP do not have any statutory backing, but the HKSA requires complinace by members. Before they are mandatory, SSAPs must be approved by the Council of the HKSA. HKSA also recommends, but does not require, the use of IAS in the absence of local standards. As a result of a major policy change by the HKSA in 1993, it became the policy of HKSA to harmonise its standards with IAS, rather than with the UK, and a programme to do so is under way.

An Urgent Issues and Interpretations Subcommittee of the Financial Accounting Standards Committee develops guidance on applying SSAPs. The listing rules of the Hong Kong Stock Exchange impose additional financial disclosure requiements on listed companies.

Stock Exchange: The Budapest Stock Exchange Regulations for Listing, Continued Trading and Disclosure require large multinational firms and Hungarian firms with cross-border activities to follow IASC Standards. Other listed companies are allowed to follow IAS.

Accounting Principles:

Stock Exchange:

Accounting Principles: The Icelandic parliament (Althingi) enacted a new law on financial reporting (no. 144/1994) based on the 4th and 7th Directives from the European Union. Iceland was not a member of the European Union but was required to adopt the substance of the directives into law based on provisions in the European Economic Area agreeement. The 1994 law also established an Accounting Standards Board which is charged with the responsibility of supplementing the law with accounting standards. The board has issued several standards that are in an abbreviated form in conformity with standards issued by IASC.

Due to high inflation during the 1970s Iceland adopted the general price level model of accounting for financial reporting as well as for taxation purposes. The model was adopted in 1979 and is still being used despite low single digit rates of inflation in the 1990s. Currently, a separate committee appointed by the Ministry for Finance is studying whether the inflation accounting system should be abandoned.

Stock Exchange:

Accounting Principles: Financial reporting requirements for companies incorporated in India are set out in the Companies Act. An amendment to that Act that took effect 31 October 1998 requires compliance with accounting standards established by a new National Advisory Committee on Accounting Standards (NAC). Members of NAC are nominated by the Institute of Chartered Accountants of India (ICAI), the Institute of Cost and works Accountants of India, the Institute of Company Secretaries of India, the central Government, the Reserve Bank of India, the Compotroller and Auditor-General of India, the SEBI, and others. Accounting standards specified by ICAI shall take precedence until NAC is established. Thereafter, accounting standards in India will be prescribed by the central government in consultation with the NAC.

In 1977, the ICAI created an Accounting Standards Board which publishes accounting standards. The ASB's policy is to take IAS into consideration in developing its standards. Most of those standards conform in all material respects to IAS; those on R&D, foreign exchange, borrowing costs, banks, and business combinations do not.

Stock Exchange: Jakarta Stock Exchange and Capital Market Supervisory Agency (BAPEPAM) requires public companies to company with Statements and Interpretations of the Committee on Financial Accounting Standards.

Accounting Principles: The standard-setting body in Indonesia is Komite Standar Akuntaksi Keuangan (Committee on Financial Accounting Standards). After they issue a Statement of Financial Accounting Standards, it must be endorsed by the Indonesian Institute of Accountants, though their Interpretations need not be endorsed by IIA. Under Indonesian law, both public and private companies must comply with those accounting standards. Since 1994, it has been the policy of the Committee to use International Accounting Standards as the basis for developing Indonesian standards.

Stock Exchange: All companies must follow Iranian accounting principles.

Accounting Principles: We need information. Can you help?

Stock Exchange:

Accounting Principles: We need information. Can you help?

Stock Exchange: The Dublin Stock Exchange requires that listed companies prepare their financial statements using UK GAAP as promulgated in Ireland (see below). However, foreign issuers based in the EU may use their national GAAP.

Accounting Principles: Accounting standards issued by the Accounting Standards Board (ASB) of the United Kingdom are promulgated in the Republic of Ireland by the Institute of Chartered Accountants in Ireland, where appropriate modified to take account of the different legislative background in the Republic.

Stock Exchange: The Tel Aviv Stock Exchange requires listed companies to follow Israeli Accounting Standards, which are in line with U.S. GAAP.

Accounting Principles: The Israel Accounting Standards Board (IASB) was formed in April 1997 on joint agreement among the institute of Certified Public accountants in Israel, the Israel Securities Authority, and the Tel Aviv Stock Exchange. The IASB is independent and operates under a Public Council. The IASB has stated that its long-term objective is to harmonise Israeli GAAP with International Accounting Standards. IASB's current work programme includes projects to adopt a number of IAS. The Chairman of IASB has said that the board has recently started to evaluate each IAS with the intention of adopting the majority either verbatim or with slight modifications. The project is likely to take two years (through the end of 2000).

While, by law, all limited liability companies in Israel are required to publish financial statements, only those regulated by the Securities Authority or the Stock Exchange must follow IASB Standards. Legislation is being considered that would require all companies to follow IASB Standards.

Stock Exchange: The Italian Exchange (Milan) allows IAS financial statements by foreign listed companies. Domestic companies may follow IAS as well for consolidated financial statements.

Accounting Principles: Italian accounting standards are established, in part, by Italian Law and, in part, by principles issued by the Consiglio Nazionale dei Dottori Commercialisti e dei Ragionieri. If neither of those two sources has addressed an issue, companies generally follow IAS. In February 1998, Italy passed a law allowing companies whose securities are publicly traded in the EU and also in a non-EU country to prepare their consolidated financial statements, for domestic reporting purposes, using International Accounting Standards if IAS are not in conflict with the EU directives and are accepted by the non-EU country. (A recent EU study showed that by appropriate choice where IAS allow alternative practices, an enterprise can comply with EU directives and, at the same time, with IAS.)

Stock Exchange:

Accounting Principles: One of seven French-speaking West African countries (including Benin, Burkina Faso, Ivory Coast, Mali, Niger, Senegal, and Togo) that in 1998 signed a business harmonisation treaty that includes creation of a new accounting plan -- Systeme Comptable Ouest-Africain (Plan SYSCOA). SYSCOA is not based on IAS.

Stock Exchange: Jamaica Stock Exchange requires all registrants to submit financial statements that follow Statements and recommendations of the Institute of Chartered Accountants of Jamaica.

Accounting Principles: Jamaican generally accepted accounting principles (Jamaican) GAAP are set by the Accounting Standards Committee (ASC) of the Institute of Chartered Accountants of Jamaica (ICAJ) after appropriate due process. Standards are designated Statements of Standard Accounting Practice (SSAPs) and apply to all companies and other kinds of businesses that prepare accounts that are intended to show a true and fair view.

As a means of ensuring that standards satisfy certain fundamental criteria, including international developments, they represent substantial adaptation of International Accounting Standards. However, in particular circumstances the ASC may develop a standard to address diversified accounting treatment, where it considers standardisation is necessary to promote comparability, transparency and consistency.

The ICAJ is examining strategy options for adoption of International Accounting Standards at some time in the future. There are however, a number of challenges that confront this consideration.

The Jamaican Securities Commission, a parastatal organisation, generally supports the standards but has also issued prudence reporting requirements for financial institutions.

Stock Exchange: By regulation of the Ministry of Finance, the financial statements submitted by a foreign company listed on the Tokyo Stock Exchange must be based on the accounting standards as follows:

(1) If the financial statements are the same as those used in its home country, a foreign issuer is allowed to submit these financial statements (known as "home country basis").

(2) If the financial statements used in its home country are not sufficient in disclosure quality and the issuer uses a different set of financial statements based on the different accounting standards for foreign listing purposes, the foreign issuer is allowed to submit these financial statements (known as "third country basis"). To illustrate, some Swiss companies that submit IAS financial statements for listing on the London Stock Exchange also submit financial statements based on IAS to the Tokyo Stock Exchange.

(3) If it is impossible to meet the above two criteria, the Minister of the Finance can specify the accounting standards on which the financial statements has to be based (known as "Minister of the Finance directed basis").

If financial statements based on IAS satisfy one of the above three, a foreign issuer can submit financial statements based on IAS.

Accounting Principles: Three laws affect financial reporting in Japan. The main law is the Commercial Code, which applies to all corporations and defines how assets, liabilities, revenue, expenses, and net income are calculated. The Securities and Exchange Law governs financial reporting by public companies. Measurements of assets, liabilities, revenue, expenses, and net income are the same as under the Commercial Code. The Corporate Income Tax Law also addresses some accounting measurement issues not covered in the Commercial Code or securities law. Taxable income is net income measured under the Commercial Code, with some adjustments.

The three laws are administered by the Ministry of Finance. Accounting standards are set by the Business Accounting Deliberation Council (BADC), an advisory committee to the Ministry of Finance. The Japanese Institute of Certified Public Accountants issues implementation guidance. In setting new standards or revising existing rules, BADC takes into consideration IASC standards and those issued by leading national standard-setters.

In March 2000, the Japanese Institute of CPAs and the Japan Federation of Economic Organizations (Keidanren, which is an organization of large Japanese companies) jointly announced that a new private sector accounting standard-setting body will be established in Japan, possibly by July 2001.

Stock Exchange: The Amman Stock Exchange (formerly Amman Financial Market) requires both domestic and foreign listed companies to comply with IASC Standards.

Accounting Principles: We need information. Can you help?

Stock Exchange: Kazakhstan Stock Exchange requires that all "A-listed" companies must submit financial statements that comply with IASC Standards. Other listed companies follow Kazakhstan accounting principles.

Accounting Principles: Accounting principles are prescribed by the Ministry of Finance under the Accounting Statute of 1995.

Stock Exchange:

Accounting Principles: In 1998, the Institute of Certified Public Accountants of Kenya has resolved to adopt International Accounting Standards and phase out Kenyan Accounting Standards for financial years commencing on or after 1 January 2000, although earlier application of IAS is encouraged.

Stock Exchange: For the Korean Stock Exchange, under the requirements of the Korean Securities and Futures Commission (KSFC), foreign companies may submit financial statements in their own national GAAP with a note reconciling to Korean GAAP, or they may submit Korean GAAP financial statements. They may not submit IAS statements. Korean companies must follow Korean GAAP.

Accounting Principles: As a result of a 1998 agreement between the Korean Government and the World Bank, a new independent private-sector Korea Accounting Standards Board was created as of 1 July 1999 (to begin operations 1 September). The Board operates under a new Korea Accounting Institute, also created as of 1 July 1999. The Board's goal is to improve Korean accounting standards to a level consistent with international best practices.

Stock Exchange:

Accounting Principles: By a Ministerial Order of 1990, IAS are adopted as national standards, with explanatory material added.

Stock Exchange: Kyrgyz Stock Exchange requires that all listed companies must submit financial statements that follow Kyrgyz accounting principles.

Accounting Principles:

Stock Exchange: Riga Stock Exchange listing rules require that all 'Official List' companies must follow IAS.

Accounting Principles: IAS are recommended, although there is no legal requirement to apply them.

Stock Exchange:

Accounting Principles: Laos accounting laws require that all business enterprises, whether domestic or foreign owned, must prepare financial statements. The Accounting Department of the Ministry of Finance is responsible for setting accounting standards. The use of International Accounting Standards is permitted.

Stock Exchange:

Accounting Principles: We need information. Can you help?

Stock Exchange:

Accounting Principles: The Legal and Technical Committee and the Council of the Lesotho Institute of Accountants have considered IASC standards and recommended their adoption (with the exception of IAS 32). There is no legal requirement for companies to apply them.

Stock Exchange:

Accounting Principles: We need information. Can you help?

Stock Exchange:

Accounting Principles: We need information. Can you help?

Stock Exchange: National Stock Exchange of Lithuania requires that all companies on the 'Official Trading List' must follow IAS.

Accounting Principles: The Lithuanian Accounting Institute develops national accounting standards. The Law on Accounting Principles, which sets legal requirements for financial reporting practices, stipulates that companies must either (a) follow national accounting standards or (b) follow International Accounting Standards and EU accounting directives.

Stock Exchange: Luxembourg Stock Exchange allows IAS financial statements for foreign companies, provided the EU directives are also complied with. Foreign listed companies may also follow US or UK GAAP. Foreign listed companies may also follow their national GAAP if they include a reconciliation of significant differences with IAS.

Accounting Principles: Companies follow the EC 4th and 7th Directives. National accounting standards are not established.

IFAC Member: No

Stock Exchange: The Macedonia Stock Exchange requires that all companies, foreign and domestic, follow IASC Standards.

Accounting Principles: Decree No. 08-6423/1, approved by the Minister of Finance of Macedonia on 7 July 1997, requires that "accounting standards implemented in the Republic of Macedonia are the International Accounting Standards promulgated by the International Accounting Standards Board." Pursuant to that decree, the Ministry of Finance has adopted a number of specific IAS but some of the more recent IAS (issued in 1997 and 1998) have not yet been adopted.

IFAC Member: Yes

Stock Exchange:

Accounting Principles: We need information. Can you help?

IFAC Member: Yes

Stock Exchange: Kuala Lumpur Stock Exchange allows IAS financial statements pursuant to "Guidelines for the Public Offering of Securities of Foreign-Based Companies With Listing and Quotation on the Kuala Lumpur Stock Exchange" adopted by the Malaysian Securities Commission 1 April 1997. Those guidelines allow foreign issuers to follow IAS or Malaysian GAAP. "Under certain strict conditions," on special application to the Securities Commission, a foreign registrant's own national GAAP may be acceptable if a reconciliation of net profit or loss and shareholders' equity to Malaysian GAAP is provided.

Accounting Principles: The Malaysian Accounting Standards Board (MASB) is a statutory body established by the Financial Reporting Act (1997) with sole authority to set legally binding financial reporting standards in Malaysia. The following is from the MASB:

"The MASB pursues a policy of internationalisation/harmonisation of Malaysian concepts statements and accounting standards which will lead to those statements and standards being made compatible, in all material respects, with the standards of other national and international standard-setters, primarily the IASC.

"The MASB will, where possible, use the work of the IASC but will review the IASC standards to assess their suitability in the context of structural exceptions in the economy, legislative or otherwise, peculiar to Malaysia. The MASB will modify those standards, as necessary, or develop new standards where the IASC has not addressed a matter or where standards are required to suit the Malaysian environment. The MASB's current work programme involves the review of all accounting standards issued in Malaysia."

IFAC Member: No

Stock Exchange:

Accounting Principles: One of seven French-speaking West African countries (including Benin, Burkina Faso, Ivory Coast, Mali, Niger, Senegal, and Togo) that in 1998 signed a business harmonisation treaty that includes creation of a new accounting plan -- Systeme Comptable Ouest-Africain (Plan SYSCOA). SYSCOA is not based on IAS.

IFAC Member: Yes

Stock Exchange: The bye-laws of the Malta Stock Exchange Act of 1990 require all listed companies to publish interim (half-yearly) and yearly financial statements prepared in conformity with IAS.

Accounting Principles: Compliance with IAS is mandatory under the 1995 Companies Act for accounting periods beginning after 30 June 1996. An International Accounting Standards Advisory Board has been established by the Malta Institute of Accountants to assist members in applying IAS.

IFAC Member: No

Stock Exchange:

Accounting Principles: Accounting Standards and Guidelines are developed locally by the Mauritian Accounting and Auditing Standards Committee. IAS are used as a guide, with the goal that compliance with the requirements of Mauritius Accounting Standards will ensure compliance with the requirements of International Accounting Standards.

IFAC Member: Yes

Stock Exchange: The Comision Nacional de Valores (Mexican National Securities Commission) requires that listed companies comply with standards set by the Mexican Institute of Certified Public Accountants (see below).

Accounting Principles: Accounting standards are set by the Accounting Principles Commission (CPC) of the Mexican Institute of Certified Public Accountants. Their pronouncements are known as Bulletins. If no Mexican standard exists, Bulletin A-8 calls for the use of International Accounting Standards or the standards in the company's home country, effective 1 January 1995. CPC also issues Circulars that contain official interpretations and recommendations, but Circulars are not mandatory. The Mexican National Securities Commission also issues rules that must be followed by public companies. On 29 December 1995, the Mexican bank regulatory agency (CNBV) issued new Mexican bank accounting principles that are consistent with IAS.

IFAC Member: Yes

Stock Exchange:

Accounting Principles: Accounting is regulated by the Ministry of Finance and the National Accounting Standards Working Group. The first group of twelve IAS-conformed National Accounting Standards and a National Chart of Accounts became effective January 1, 1998.

IFAC Member: No

Stock Exchange:

Accounting Principles: Accounting is regulated by the Myanmar Accountancy Council, part of the Auditor-General's office. The Council does not promulgate accounting standards but, rather, accepts financial statements prepared using either International Accounting Standards or UK GAAP.

IFAC Member: Yes

Stock Exchange:

Accounting Principles: Standards are developed locally. IAS used as a guide.

IFAC Member: No

Stock Exchange:

Accounting Principles: The Institute of Chartered Accountants of Nepal Act, 1996, makes the use of International Accounting Standards mandatory in Nepal.

IFAC Member: Yes

Stock Exchange: Amsterdam Stock Exchange allows foreign companies to follow either IAS or US GAAP without reconciliation to Netherlands GAAP. Domestic companies may follow Netherlands GAAP or IAS, US GAAP, or UK GAAP with a reconciliation to Netherlands GAAP.

Accounting Principles: Accounting requirements are established by law. Additional accounting guidelines (not mandatory but strongly recommended and looked to under the law) are set by the Council for Annual Reporting (Raad voor de Jaarverslaggeving). Those guidelines are based increasingly on IAS. IAS are incorporated into the guidelines "to the extent considered acceptable and relevant".

Under the Netherlands Civil Code, a company that has multinational operations may prepare its financial statements in accordance with the GAAP of one of the member states of the European Community, as long as the financial statements still enable a sound judgement to be formed of the assets and liabilitieis and the results of the company.

IFAC Member: Yes

Stock Exchange: For the New Zealand Stock Exchange, domestic listed companies must follow NZ GAAP. Foreign listed companies may follow NZ GAAP, IAS, US GAAP, UK GAAP, or their national GAAP without reconciliation to NZ GAAP.

Accounting Principles: Accounting standards are set by the Financial Reporting Standards Board (FRSB), a committee of the Institute of Chartered Accountants of New Zealand. The Companies Act of 1993 created an Acounting Standards Review Board, which is responsible for reviewing and approving standards developed by FRSB. Once approved, standards of FRSB become mandatory for all companies. ASRB can approve standards developed and submitted by other than FRSB. ASRB has statutory obligation to liaise with the Australian Accounting Standards Board, with a view to harmonising New Zealand and Australian accounting standards. FSRB also has a policy of trying to develop standards that are consistent with IAS. All new standards must include a comparison with both Australian and IASC standards.

The foreword to the New Zealand Statements of Accounting Standards says: "The [Institute of Chartered Accountants of New Zealand] will incorporate International Accounting Standards within the body of financial reporting standards, wherever possible."

IFAC Member: Yes

Stock Exchange:

Accounting Principles: We need information. Can you help?

IFAC Member: No

Stock Exchange:

Accounting Principles: One of seven French-speaking West African countries (including Benin, Burkina Faso, Ivory Coast, Mali, Niger, Senegal, and Togo) that in 1998 signed a business harmonisation treaty that includes creation of a new accounting plan -- Systeme Comptable Ouest-Africain (Plan SYSCOA). SYSCOA is not based on IAS.

IFAC Member: Yes

Stock Exchange:

Accounting Principles: We need information. Can you help?

IFAC Member: Yes

Stock Exchange: Oslo Stock Exchange allows foreign listed companies to follow IAS, US, or UK GAAP without reconciliation to Norwegian GAAP. With permission, they may also follow other national GAAP. Domestic listed companies must follow Norwegian GAAP.

Accounting Principles: The New Norwegian Accounting Act (July 1998) is generally consistent with IAS. The law includes basic accounting principles (revenue recognition, matching, etc.) and general measurement rules for assets (for example, lower of cost or market). Furthermore, the law includes reference to good accounting practice, and background papers to the law make reference to the Norwegian Accounting Standards Board and the Oslo Stock Exchange as the main sources to determine what is good accounting practice. With respect to listed companies, accounting standards and pronouncements from the Oslo Stock Exchange are, for all practical purposes, requirements and not just recommendations.

When the Parliament approved the New Norwegian Accounting Act, it made reference to IAS as part of the legal background material (Innst. O, number 61-1997-98, page 24): " ...the development of 'true and fair view' must be based on a harmonization to the IAS rules as a basis for Norwegian standard setting," Accordingly, a Norwegian company generally would be allowed to follow IAS, with certain allowed alternatives in cases where such alternative is considered to provide better information than IAS.

IFAC Member: No

Stock Exchange:

Accounting Principles: IAS are mandatory in Oman. Sultani Decree 77 of 1986 requires all companies in the Sultanate of Oman to prepare financial statements in accordance with IASs.

IFAC Member: Yes

Stock Exchange:
Karachi Stock Exchange requires that all companies must follow IASC Standards as well as comply with reporting requirements of the Companies Ordinance of 1984, the Banking Ordinance of 1964, and the Insurance Act of 1935.
Lahore Stock Exchange allows both domestic and foreign companies to file financial statements using IASC Standards or U.K. GAAP.

Accounting Principles: The Institute of Chartered Accountants of Pakistan (ICAP) reviews all International Accounting Standards (IAS) and intimates to the Securities and Exchange Commission of Pakistan (SECP) to issue notification. The IAS becomes part of company law and becomes applicable to all listed companies only. Other companies are encouraged to apply them.

The ICAP has also issued Technical Releases and Selected Opinions, which are further interpretations of IAS on the basis of local specific circumstances.

Specialised regulations have been established for banks and insurance companies.

IFAC Member: Yes

Stock Exchange: Panama's Stock Exchange, the Bolsa de Valores de Panamá, requires that listed companies follow IAS starting in 2000.

Accounting Principles: By law, the Accounting Technical Board ("Junta Técnica de Contabilidad", JTC, a government agency) has responsibility to approve accounting standards in Panama. JTC has created a Financial Accounting Standards Commission -- Comision de Normas de Contabilidad Financiera de Panama (NOCOFIN) -- to develop the standards and to provide guidance for implementing them.

In August 2000, the JTC passed a resolution ordering both the adoption of International Accounting Standards and the inclusion in the Registry of Accounting Standards of all IAS in effect.

By means of Resolution No. 3, dated 30 August 2000, published in issue No. 24,161 of 16 October 2000 of the "Gaceta Oficial", JTC resolved:

1. To adopt in their entirety the Accounting Standards issued by the International Accounting Standards Committee, as well as those that IASC shall issue in the future.
2. To "inscribe in the ‘Registry of Financial Accounting Standards of the Accounting Technical Board’ the following Standards issued by the International Accounting Standards Committee (IASC)". [This clause is followed by a list of allegedly all IAS in effect.]
3. To "coordinate with NOCOFIN, the universities and the professional associations, the divulgence of International Accounting Standards".
4. That the IAS issued now and in the future by the IASC, "wholly adopted by this Resolution", shall come into effect starting in those fiscal periods that begin in 2001 and thereafter.

JTC officially adopted the International Accounting Standards, and ordered them to be applied for accounting activities in the Republic of Panama. The decision was made via Resolution No. 4 of 10 February 1998, officially approved on 27 March 1998, and published in issue No. 23,533 of the "Gaceta Oficial", the government's official journal, dated 30 April 1998. The Resolution also orders the adoption of the "International Standards and Guides of Auditing" in the Republic of Panama.

Here is a summary of the main provisions of Resolution No. 4, regarding the adoption of IAS:

1. The international accounting standards issued by the International Accounting Standards Board, are adopted as "own and applicable" in the Republic of Panama.
2. The Financial Accounting Standards Commission of Panama (NOCOFIN) is authorised to issue regulations for the application of IAS in Panama.
3. JTC resolves to coordinate with the universities, professional associations and other national and international organisations, regarding the promulgation of IAS.
4. JTC resolves to promulgate (publish, maybe) all IAS adopted by this Resolution.
5. IAS go into effect "for those fiscal periods that begin in 1999" and thereafter.
6. JTC resolves that the national accounting standards previously approved by Panama are to be "eliminated from the registry", except for those that are considered applicable only in Panama.

Under Accord 4-99 adopted by the Superintendent of Banks on 11 May 1999, banks in Panama are permitted to choose to follow either (a) IAS or (b) US GAAP starting with the year ended 31 December 1999. Banks must notify the Superintendent of Banks about which set of standards they have chosen. Also, Panamanian banks must be independently audited, and auditors of banks are permitted to follow either (a) International Standards of Auditing (ISAs) or (b) Statements of Auditing Standards (SAS) issued by the American Institute of Certified Public Accountants (AICPA).

Of 69 banks that published their financial statements for periods ended 31 December 1999, 61 presented them in accordance with IAS, 6 chose US GAAP, and 2 presented under "generally accepted accounting principles" without further description. Among the IAS banks is the Banco Nacional de Panamá, the government bank, which performs roles of central bank in Panama.

In August 1999, The Supreme Court of Justice in Panama ordered the "temporary suspension" of JTC Resolution No. 4, discussed above, that adopted IAS as the official accounting standards for businesses in Panama. The Court said that only the Ministry of Commerce and Industry, not the accounting board, has authority to adopt IAS. The ruling does not affect the similar requirement (Accord 4-99) adopted by the Superintendent of Banks that all Panamanian banks follow IAS starting next year.

Further, Panama’s Stock Exchange (Bolsa de Valores de Panamá, or BVP) has sent a letter to its listed companies stating that its requirement for companies trading in the Exchange to present their financial statements in accordance with IAS will still be in place. Their letter states: "The Bolsa de Valores de Panamá, S. A., as the private entity that it is, decided to adopt IAS with the clearly defined objective of increasing transparency and equal the preparation, presentation and auditing of the financial statements of the companies whose instruments are registered and traded at this Exchange. This objective has not changed, so the Bolsa de Valores de Panamá, S. A. will keep on working in benefit of the national and international investing public, which forces us to continue with the process of adoption of International Accounting Standards as it has been programmed and widely divulged."

IFAC Member: No

Stock Exchange: A stock exchange is being organised.

Accounting Principles: The Papua New Guinea Institute of Accountants is in process of creating an accounting standards board.

IFAC Member: Yes

Stock Exchange:

Accounting Principles: We need information. Can you help?

IFAC Member: Yes

Stock Exchange: Domestic listed companies must follow IAS (or US GAAP in the absence of an IAS on the subject). Foreign listed companies must follow their own national GAAP with an explanation of differences with IAS.

Accounting Principles: Article 223 of the General Corporate Law of Peru requires that all Peruvian companies follow generally accepted accounting principles (GAAP) in preparing their financial statements. Resolution No. 013-98-EF/93.01 under that law, approved 17 July 1998, establishes International Accounting Standards as GAAP in Peru or, in the absence of an International Accounting Standard, U.S. GAAP.

IFAC Member: Yes

Stock Exchange:

Accounting Principles: All public companies and all companies with more than 20 shareholders must follow rules of the Philippine Securities and Exchange Commission (SEC). The Accounting Standards Council (ASC) of the Philippines Institute of Certified Public Accountants (PICPA) issues accounting standards. The ASC has eight members: four from PICPA, one from the SEC, one from the Central Bank, one from the Professional Regulation Commission, and one from the Financial Executives Institute of the Philippines.

ASC standards are recognised by the SEC and Central Bank of Philippines. After approval by the Board of Accountancy and the Professional Regulation Commission (government bodies), ASC standards become mandatory. The ASC's policy is to review and adopt both existing and new IASC Standards as Philippine standards such that "compliance with Philippine GAAP would mean automatic compliance with IASC standards".

IFAC Member: Yes

Stock Exchange: Warsaw Stock Exchange requires 3-years audited financial statements prepared in accordance with Polish 1994 Accountancy Act. Domestic companies must follow Polish GAAP but if their shares also trade in a foreign market they must include a reconciliation to either IAS or US GAAP. Foreign listed companies may follow IAS or US GAAP with a reconciliation to Polish GAAP.

Accounting Principles: Principles are set out in the 1994 Polish Accountancy Act, which also requires conformity with EU Directives. A Committee on Accounting Standards was established in 1997 by the President of the Polish Securities Commission under the Foundation for the Development of Capital Market Standards. The Committee consists of 9 members: representatives of academics, international and local auditing firms, Ministry of Finance, Polish Securities and Exchange Commission and Polish Chamber of Auditors. That committee sets standards that must be followed in accordance with the Accountancy Act of 1994. The committee has adopted the IASC conceptual framework as the basis for formulating Polish accounting standards. The committee has concluded that in the absence of a specific Polish accounting standard, compliance with IAS is appropriate under the Accountancy Act.

In addition to standards issued by the Committee, the Chairman of Polish Securities and Exchange Commission (KPWiG) issues regulations regarding specific disclosure requirements for publicly traded companies.

As of 1 January 1999, the Polish securities regulations and disclosure requirements were changed to require foreign issuers to present their financial statements in accordance with (1) the Polish Accountancy Act, (2) IAS or (3) US GAAP. Polish issuers whose shares or depositary receipts are also listed on a foreign stock exchange are required to present financial statements in accordance with Polish GAAP together with a reconciliation to either IAS or US GAAP.

Further, the Polish Accountancy Act is now under revision. Under the first draft of revised Act, for a Polish company or a foreign issuer following Polish GAAP, if an accounting matter is not covered by the Act or by Polish GAAP, IAS should be applied.

IFAC Member: Yes

Stock Exchange: Lisbon Stock Exchange (BVL - Bolsa de Valores de Lisboa) requires that financial statements follow Portuguese accounting standards.

Accounting Principles: Accounting standards are developed by the Ministry of Finance and the Commission for Accounting Normalisation (an independent agency of government). These standards conform to the directives of the EC and are not significantly different from IAS.

IFAC Member: Yes

Stock Exchange: Bucharest Stock Exchange requires that listed companies prepare their financial statements using Romanian accounting standards. The BSE is testing the use of IAS for five companies for a trial period, after which they will consider expanding IAS to all companies -- but in parallel with Romanian accounting standards.

Accounting Principles: Accounting standards are issued by the Ministry of Finance after consulting the CECCAR (National Commission of Accounting Experts). CECCAR is an independent association, not an agency of the government.

In June 1999, Romania adopted regulations under its Accountancy Law to (a) require companies to follow IAS and the IASC Framework in the absence of a national accounting standard and (b) begin a programme to develop national standards based on IAS. The regulations will be phased in starting with a few large companies in 1999, public companies and some others of national interest in 2000, large nonpublic companies in 2001, and by 2006 for smaller companies.

IFAC Member: No

Stock Exchange:

Accounting Principles: A "Programme for the Reform of Russian Accounting" based on International Accounting Standards was approved by the government in March 1998, along the lines of a proclamation by the President of the Russian Federation in February 1997. There will be a national system of accounting standards rather than automatic adoption of IAS. The programme to develop a set of Russian accounting standards is expected to take at least three years.

The reform programme is a project of the American Chamber of Commerce in Russia. The U.S. Agency for International Development is providing over $1 million in funding for the creation of an International Center for Accounting Reform (ICAR) in Moscow. ICAR will work closely with the Russian Government's Interdepartmental Commission for Reform of Accounting and Auditing to bring Russian accounting and auditing rules into conformance with international standards. ICAR will perform the following three functions: Rework the normative base for the reform of the accounting and auditing systems; Prepare practical instructions for the application of the reform; and Develop training materials and re-training courses for practicing accountants.

ICAR plans to publish a newsletter in Russian and English, hold seminars and workshops which will present the work of the Center and establish a working group. ICAR is located in Moscow at Ul. Pokrovka 42/5, Moscow 103062, Tel: 937-7046, Fax: 937-7040.

The Ministry of Finance of Russia has issued Order No. 36n dated 12 July 1999, Changes and Amendments to the Guidance on Preparing and Presenting Consolidated Financial Statements approved by Ministry of Finance Order No. 112 dated 30 December 1996. Under Order No. 36n, a group is given a dispensation from its obligation to file Russian-based consolidated accounts if it produces consolidated accounts in compliance with International Accounting Standards that are true and fair including disclosures.

IFAC Member: Yes

Stock Exchange:

Accounting Principles: Accounting standards are established by the Ministry of Commerce

IFAC Member: Yes

Stock Exchange:

Accounting Principles: We need information. Can you help?

IFAC Member: Yes

Stock Exchange: Stock Exchange of Singapore requires domestic companies to follow Singaporean GAAP. Foreign listed companies may follow IAS (no reconciliation to Singaporean GAAP is required) or US GAAP (reconciliation to Singaporean GAAP is required).

Accounting Principles: Statements of Accounting Standards (SAS) are issued by the Institute of Certified Public Accountants of Singapore (ICPAS). They are developed by the ICPAS's Accounting Standards Committee.

ICPAS stated policy, March 2000: "ICPAS considers the accounting standards of other major jurisdictions as part of the due process for setting accounting standards in Singapore. Where an accounting treatment prescribed by an IAS is consistent with that of major jurisdictions like the United States and the United Kingdom, the Institute would not generally adopt a treatment which is different from IAS. But where major jurisdictions require or allow differing accounting treatment, then it would be justifiable for the Institute to consider allowing a treatment which departs from the IAS and which is applicable in the Singapore context. Neverthelsss, such departures would be kept to a minimum. The Institute has also taken the position to accelerate the process of standard-setting and to harmonise with IASs. Our approach will be very much in line with the recommendations on 'Coordination with National Due Process' as contained in the Novembver 1999 IASC Report, Recommendations on Shaping IASC for the Future."

IFAC Member: No

Stock Exchange: Bratislava Stock Exchange requires IAS for foreign listed companies and Slovak Accounting Standards for domestic listed companies.

Accounting Principles: The Act on Accounting (No. 563/1991) places responsibility for Slovak accounting standards with the Ministry of Finance. The accounting regieme is similar to the European Accounting Directives.

IFAC Member: Yes

Stock Exchange: Ljubljana Stock Exchange allows domestic and foreign listed companies to follow IAS or US or UK GAAP or their national GAAP without reconciliation to Slovenian GAAP.

Accounting Principles: The Slovene Accounting Standards Committee of the Slovenian Institute of Auditors establishes Slovene Accounting Standards. Those standards are recognised under the 1993 Company Act. Slovene Accounting Standards "encompass a much wider scope than that currently covered by the IAS," including matters of financial records, bookkeeping, charts of accounts, and financial controls.

IFAC Member: Yes

Stock Exchange: Paragraph 8.51(a) of the Johannesburg Stock Exchange's listing requirements requires compliance with GAAP, but GAAP is not defined. Under Exchange policy, a listed company may follow South African GAAP or IAS (without reconciliation to South African GAAP). As noted below, compliance with South African GAAP results also in compliance with IAS, though not vice versa.

Accounting Principles: In 1993, the Council of The South African Institute of Chartered Accountants and the Accounting Practices Board, which is the body that approves South African accounting standards, decided that Statements of Generally Accepted Accounting Practice should be based on IASs. To implement that decision, South Africa commeced a harmonisation and improvements project to revise its existing GAAP in line with IAS and to issue a new standard in all areas where an IAS exists but no equivalent South African standard exists. While the South African policy does not permit differences with IAS on fundamental issues, it does allow for elimination of alternative treatments, additional disclosures, guidance, and differences from IAS if IAS is in conflict with law or regulation. As a result of the harmonisation programme, compliance with South African GAAP results also in compliance with IAS, but not vice versa.

IFAC Member: Yes

Stock Exchange: Spanish companies listed on any of the four public securities exchanges in Spain (Madrid, Barcelona, Bilbao, and Valencia) must prepare their financial statements according to Spanish accounting principles. Listed companies that are domiciled in another European Union country may submit financial statements using their own national GAAP without reconciliation to Spanish GAAP. Listed companies from other countries may submit financial statements using IAS, US GAAP, or their own national GAAP but with an audited reconciliation to Spanish GAAP.

Accounting Principles: Accounting standards are established under law, particularly the Code of Commerce. Royal Decree 302, 17 March 1989, recognises the Instituto de Contabilidad y Auditoria de Cuentas (ICAC) as the national accounting standard setter. ICAC is a government agency that develops accounting standards within the Ministry of Finance. There is a national general accounting plan. Since 1998 it has been ICAC's stated policy to work to minimise differences between IAS and Spanish GAAP.

Guidance is also provided by the professional organisation, Asociacion Española de Contabilidad y Administracion de Empresas (AECA).

IFAC Member: Yes

Stock Exchange: Companies listed on the Columbo Stock Exchange must submit financial statements under Sri Lanka GAAP.

Accounting Principles: The Sri Lanka Accounting and Auditing Standards Act No. 15 of 1995, requires all specified business enterprises -- including listed companies -- to prepare and present financial statements in accordance with Sri Lanka Accounting Standards.

The Act empowers the Institute of Chartered Accountants of Sri Lanka to adopt suitable accounting standards from time to time and to publish them in the Gazette to have legal effect. The standards are developed by the Accounting Standards Committee of the Institute and are largely derived from IASs. However, the Institute has framed two national standards to deal with issues not covered under IASs, namely finance companies and plantation accounting. Accounting standards relating to banks must have the concurrence of the Banking Supervision Department of the Central Bank.

All IASB exposure drafts are examined by the Accounting Standards Committee, and comments are forwarded to IASB. IASs undergo due review process by the Committee before they are formally adopted by the Council of the Institute.

The Accounting Standards Committee consists of 12 members, including representatives of accountancy bodies, regulatory bodies, and user groups.

Under the Act, an independent body called the Sri Lanka Accounting and Auditing Standards Monitoring Board has been set up to monitor compliance with the accounting standards by all specified business enterprises. The Board has 13 members, including representatives of accountancy bodies, academics, capital market regulators, and industry and commerce.

IFAC Member: Yes

Stock Exchange:

Accounting Principles: We need information. Can you help?

IFAC Member: Yes

Stock Exchange:

Accounting Principles: The Swaziland Institute of Accountants issues Swaziland Accounting Standards that are identical to or conform with International Accounting Standards. There is no legislation that forces companies to use any particular accounting standards.

IFAC Member: Yes

Stock Exchange: Stockholm Exchange requires domestic companies to follow Swedish GAAP. Foreign listed companies may follow Swedish GAAP; alternatively they may follow IAS, UK, or US GAAP with a reconciliation to Swedish GAAP.

Accounting Principles: Companies must follow the Annual Accounts Act of 1995 in preparing their financial statements. Accounting standards, which mirror IAS unless IAS is in conflict with the Act, are established primarily for public limited companies by the Financial Accounting Standards Council (Redovisiningsrådet, or RR). RR includes representatives of the accounting profession and industry.

IFAC Member: Yes

Stock Exchange: Swiss Stock Exchange permits all listed companies, domestic and foreign, to follow Swiss GAAP (see below) or either IAS or their national GAAP with no reconciliation to Swiss GAAP required. Companies using IAS or national GAAP must also meet the disclosure requirements of Swiss GAAP.

Accounting Principles: The Swiss Foundation for Accounting and Reporting publishes accounting standards (ARR/FER) that are generally consistent with, but not as detailed as, IAS. Compliance with ARR/FER is required for listed companies. However, compliance with IAS ensures compliance with ARR/FER, and many large Swiss companies follow IAS. A foreign listed company using its own national GAAP may have to add supplemental disclosures to comply with Swiss GAAP.

IFAC Member: Yes

Stock Exchange: Damascus Stock Exchange currently closed. May reopen shortly.

Accounting Principles: Accounting principles and standards in Syria are established by the Association of Syrian Certified Accountants. They are based on IAS. Accounting laws and regulations are established by the Ministry of Internal Trade.

IFAC Member: Yes

Stock Exchange: Domestic listed companies must submit financial statements that follow Taiwanese accounting principles. Foreign listed companies must follow their own national principles and include a reconciliation to Taiwanese GAAP.

Accounting Principles: The Securities and Exchange Commission of the Ministry of Finance sets the financial reporting requirements for public companies. The Ministry of Economic Affairs issues accounting regulations for both public and nonpublic companies. An independent accounting standards board (Accounting Research and Development Foundation, or ARDF), established in 1984, publishes Statements of Financial Accounting Stanards (SFAS) that are recognised by the Ministry of Finance. ARDF also publishes interpretive guidance in the form of Supplementary Explanation Statements.

IFAC Member: Yes

Stock Exchange: Dar-es-Salaam Stock Exchange allows companies to submit IAS financial statements.

Accounting Principles: Accounting standards in Tanzania are set by the National Board of Accountants and Auditors (NBAA), a government agency. The standards are set out in Tanzanian Statements of Accounting Guidelines (TSAG). While the TSAGs are not the same as IAS, the introduction to the TSAGs states: "In the preparation of these Guidelines, account has been taken of the development of accounting standards on the international scene (i.e. the work of the International Accounting Standards Board) as well as specific developments in various countries of accounting repute. Thus these Guidelines embrace the best international accounting practice adapted where necessary to cater for Tanzanian needs."

IFAC Member: Yes

Stock Exchange: The Stock Exchange of Thailand allows foreign listed companies to follow Thai GAAP, IAS, or US GAAP. Domestic companies must follow Thai GAAP or IAS if there is no Thai standard on the subject.

Accounting Principles: Currently, accounting standards are set by the Institute of Certified Accountants and Auditors of Thailand (ICAAT). ICAAT has adopted several IAS as Thai standards. Their goal is to adopt most if not all IAS as Thai standards by 1999. The Thai government is expected to require companies to prepare financial statements using IAS starting 1999. The Finance Ministry will create a new independent self-regulatory board with responsibility both to set standards and to oversee compliance.

IFAC Member: No

Stock Exchange:

Accounting Principles: One of seven French-speaking West African countries (including Benin, Burkina Faso, Ivory Coast, Mali, Niger, Senegal, and Togo) that in 1998 signed a business harmonisation treaty that includes creation of a new accounting plan -- Systeme Comptable Ouest-Africain (Plan SYSCOA). SYSCOA is not based on IAS.

IFAC Member: Yes

Stock Exchange:

Accounting Principles:IAS are adopted as national standards

IFAC Member: Yes

Stock Exchange:

Accounting Principles: Law No. 96-112 (30 Dec. 1996) adopted a new accounting system for Tunisian private enterprises, including a conceptual framework, intended to be broadly in harmony with IAS. The Ministry of Finance has authority to adopt individual accounting standards by decree. Most of the standards that have been adopted are similar to IAS, though not the standard on translating foreign currencies. Smaller companies are allowed to use simplified standards. Some foreign enterprises are allowed to use their national GAAP or IAS.

IFAC Member: Yes

Stock Exchange: For the Istanbul Stock Exchange, foreign companies may follow IASB Standards or US GAAP or UK GAAP (and also must comply with the 4th and 7th EC Directives). A foreign company may also follow its national GAAP, in which case the ISE may require a reconciliation to IAS. Domestic companies must follow Turkish national GAAP.

Accounting Principles: Public companies, banks, and companies with more than 100 shareholders must follow accounting standards issued by the Capital Market Board (CMB), a government agency within the Ministry of Finance. Accounting standards are set by an Accounting and Auditing Committee. The committee includes representatives of the government and the private sector. The accounting standards issued by CMB are generally similar to IAS. In the absence of a specific CMB standard, CMB recommends use of either the industry practice or International Accounting Standards. Some companies prepare two sets of financial statements, one following CMB standards and the other following IASB standards.

IFAC Member: No

Stock Exchange:

Accounting Principles: We need information. Can you help?

IFAC Member: Yes

Stock Exchange:

Accounting Principles: The Accounting Standards Committee of the Institute of Certified Public Accountants of Uganda encourages the use of International Accounting Standards.

IFAC Member: No

Stock Exchange: For the Ukraine Stock Exchange, domestic listed companies must follow Ukrainian GAAP. Foreign listed companies may use either IAS or Ukrainian accounting standards.

Accounting Principles: Ukrainian GAAP is established by the Ministry of Finance. As part of an August 1998 agreement with the IMF, the Ukrainian Government adopted certain economic policies including a requirement that all commercial banks convert to IAS by end of 1998.

IFAC Member: No

Stock Exchange:

Accounting Principles: A federal law passed in the United Arab Emirates in February 1999 requires that all banks and financial institutions prepare their financial statements using International Accounting Standards for periods beginning 1 January 1999.

IFAC Member: Yes

Stock Exchange: London Stock Exchange allows IAS financial statements.

Accounting Principles: Financial Reporting Standards (FRS) are established by the Accounting Standards Board (ASB), a wholly-owned subsidiary of FRC Ltd., an independent not-for-profit corporation that promotes the best practice in financial reporting. ASB has been prescribed by the Secretary of State for Trade and Industry for the puporses of section 256(1) of the Companies Act of 1985 with the effect that accounting standards isued by the ASB are recognised as such for the purposes of the accounting requirements of the Acts in Great Britain.

The foreword to ASB standards states: "FRSs are formulated with due regard to international developments. The Board supports the International Accounting Standards Board in its aim to harmonise international financial reporting. As part of this support, an FRS contains a section explaining how it relates to the International Accounting Standard (IAS) dealing with the same topic. In most cases, compliance with an FRS automatically achieves compliance with the relevant IAS. Where the requirements of an accounting standard and an IAS differ, the accounting standard should be followed by entities reporting within the area of application of the Board's accounting standards."

ASB has established an Urgent Issues Task Force (UITF) to provide interpretive guidance. A related organisation, the Financial Reporting Review Panel, examines departures from accountancy requirements under the Companies Act.

The UK Department of Trade and Industry is currently studying the implications of allowing UK companies to follow IAS.

IFAC Member: Yes

Stock Exchange: New York Stock Exchange, NASDAQ, American Stock Exchange, Arizona Stock Exchange, Boston Stock Exchange, Chicago Stock Exchange, Chicago Board Options Exchange, Pacific Stock Exchange, Philadelphia Stock Exchange: Foreign listed companies may use US GAAP or IAS or their national GAAP. If not US GAAP, a note reconciling income statement and balance sheet items to US GAAP is required by regulation of the U.S. Securities and Exchange Commission. Domestic companies must follow US GAAP.

Accounting Principles: Since 1973, the Financial Accounting Standards Board has been the designated organization in the private sector for establishing standards of financial accounting and reporting. Those standards govern the preparation of financial reports. They are officially recognized as authoritative by the Securities and Exchange Commission (SEC) (Financial Reporting Release No. 1, Section 101) and the American Institute of Certified Public Accountants (Rule 203, Rules of Conduct, as amended May 1973 and May 1979).

The SEC has statutory authority to establish financial accounting and reporting standards for publicly held companies under the Securities Exchange Act of 1934. Throughout its history, however, the Commission's policy has been to rely on the private sector for this function to the extent that the private sector demonstrates ability to fulfill the responsibility in the public interest.

Excerpt from FASB Plan for International Activities

Over the coming years the FASB intends to engage in the following activities involving direct cooperation with other standard-setting bodies to resolve specific issues and to reduce differences in accounting standards between nations:

a. Pursue opportunities to engage in joint multinational standard-setting projects on mutually selected topics to arrive at separate national standards that are in substantial agreement with one another. The FASB has already begun a number of projects in this area, including the joint project on disaggregated disclosures with Canada and the parallel project with the IASB on earnings per share. In addition, while not formal FASB agenda projects, it is believed that the joint research study with Canada and Mexico on the North American accounting environment and the accounting concepts working group with Australia, Canada, the IASB, and the United Kingdom will lead to the identification of common problem areas that could benefit from joint consideration. Future activities will include:

--Adopting a common or substantially similar standard with Canada on disaggregated disclosures;
--Adopting a standard on earnings per share the same as or substantially similar to that of the IASB;
--Following up on the joint research study with Canada and Mexico to identify areas where differences can be reduced either by conforming existing standards or by creating common standards;
--Identifying projects that have promise for reaching broad international agreement.

b. Consider adopting foreign national or IASB standards that are judged through due process to be superior to their U.S. counterparts. The FASB will evaluate standards of other countries and of the IASB in areas where current U.S. GAAP is limited, problematic, or nonexistent. In the case of IASB standards, the focus will be on the IASB benchmark standard if a pronouncement permits alternative methods. Where it is believed that the adoption of another standard-setting body's high-quality standard would be more