Institute Comments on SEC Concept Release on International Financial Reporting

Washington, DC, May 25, 2000 - The Institute has filed a comment letter with the Securities and Exchange Commission on the agency's concept release on the development of a high-quality, global financial reporting framework for use in cross-border securities filings.

The Institute's comment letter supports the SEC's initiative to develop a high-quality, comprehensive set of generally accepted international accounting standards, as long as the standards do not diminish in any significant way fundamental investor protections in the United States. The letter notes that global accounting standards would benefit investors by providing reduced commission costs, reduced exchange rate risks, application of exchange listing standards, and greater price transparency. Acceptance of global accounting standards by foreign regulators would strengthen financial reporting standards in many foreign countries, also benefiting investors, according to the letter.