Globalization may be coming in baby steps. In the effort to move to a single, universal financial reporting standard, the Securities and Exchange Commission voted unanimously last month to open for public comment a proposal to allow U.S. companies-including investment companies-to use International Financial Reporting Standards (IFRS) for their SEC filings, rather than U.S. Generally Accepted Accounting Principles (GAAP).

The Commission also voted at its July 25 meeting to eliminate the requirement that foreign issuers that already prepare financial statements according to IFRS provide a second version to the SEC, which reconciles those existing statements with U.S. GAAP. It effectively creates a two-system regime.

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