Expect a pop in equity valuations, increased liquidity and lower trading costs as U.S. and foreign corporations list stocks using International Financial Reporting Standards (IFRS). That's according to a working paper published by the University Of Chicago Graduate School Of Business.

The Securities and Exchange Commission proposed late last month that U.S companies will have to use IFRS reporting standards as opposed to our Generally Accepted Accounting Principles (GAAP) in the near future. The SEC would permit some multinational companies to report earnings based on the international standards in 2010 and by 2014 require U.S. companies to use the IFRS standards.

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