primary steps which the U.S. needs to take to help achieve
second, reorient the U.S. standard setting process to reflect the
importance of international considerations.
The most important step the U.S. needs to take to play its proper
role in achieving international accounting harmonization is to definitively
reject the mind-set that harmonization is a theoretically attractive, but
realistic and concrete opportunity to achieve many of the benefits of harmonization in a reasonable time frame. The U.S. should act promptly
to support the lASe efforts.
lASe standards have no legal authority except to the extent they
are adopted by the authorities of individual countries. The SEC,through
IOSCO, has actively participated in the IASC's comparability project.
U.S. regulators and standard setters have not yet indicated, however, at
least publicly, that they would be willing to support the standards that
are ultimately developed by the lASe.
The U.S. should provide public support for the IASC's efforts to
develop acceptable international standards; it should participate
constructively in these efforts; and it should be prepared after the lASe
efforts are completed to recognize financial statements of foreign
companies that are prepared in accordance with or reconciled to the