Question

1. List the steps that a non-U.S company must follow to list its shares on a U.S. stock Market?

2. Describe the SEC's work plan for incorporating IFRS into the financial reporting system for U.S issuers?

3. List some of the milestones that must be achieved before the SEC will require adoption of IFRS?

Answer 1

1) This is the criteria which a company has to comply with to become eligible:

a) A company must have at least 400 shareholders who own more than 100 shares of stock.

b) The company have at least 1.1 million shares of publicly traded stock and have a market value of public shares of at least $40 million.

c) The stock price must be at least $4 a share

2) SEC's work plan In executing , the Staff gathered information using a variety of methods, including, but not limited to: performing research; seeking comment from market place participants; considering academic research; and researching the experiences both of other jurisdictions that have incorporated or have committed to incorporate IFRS into their financial reporting systems and of foreign private issuers that currently report under IFRS. In the Staff’s outreach to constituents, the Staff worked to solicit views from constituents with diverse characteristics. Focus of the Staff’s Work:

a) Influence on Standard Setting

b) Burden of Conversion

c) Reference to U.S. GAAP

3) Milestones:

a) For private companies, IFRS is an important issue, although the specific approaches and questions around adoption may differ.

b) what adoption approaches should be taken by the regulators

c) Effective dates of such rulemaking are not known, but at the forum, SEC representatives commented that certain regulatory and educational benchmarks must be reached before requiring mandatory adoption of IFRS