When generating financial statements, the Securities and Exchange Commission (SEC) allows publicly traded foreign companies to use the International Financial Reporting Standards (IFRS) rather than the Generally Accepted Accounting Principles (GAAP) if IFRS is the accounting system used in their home country.

Question

Quizplus · Accepted Answer

This is true. The SEC allows publicly traded foreign companies to use IFRS if it is the accounting system used in their home country. However, they must still reconcile their financial statements with GAAP for US investors.

When Generating Financial Statements, the Securities and Exchange Commission (SEC)