Cox to Press Global Rules

SEC Chief Seeks An Oversight Body
Wall Street Journal
5/30/2008
The head of the Securities and Exchange Commission is expected to call for creation of a body to oversee the setting of international accounting standards, a step that could hasten the ability of domestic companies to choose international standards over traditional U.S. accounting.
In a recent interview, SEC Chairman Christopher Cox said he wants to propose a "public policy oversight body" that will oversee the trustees of the International Accounting Standards Board, or IASB. Mr. Cox said the oversight body should be made up of national securities regulators and will help make IASB's governance consistent with the requirements of Sarbanes-Oxley corporate-governance rules.
Such a move could smooth the way for the SEC to allow U.S. companies to comply with International Financial Reporting Standards. The SEC last year passed a rule allowing foreign companies with U.S. listings to report using only IFRS; previously, they had to file another set of accounts using U.S. generally accepted accounting principles, or GAAP. The SEC has been considering allowing U.S. companies to comply with IFRS instead of GAAP, although it hasn't reached a decision on whether it would be an option or required after a certain period of time.