For almost two decades, the Securities and Exchange Commission (SEC) has allowed foreign companies that want to list shares on U.S. national exchanges to file their financial statements using international accounting standards without reconciliating them to U.S. accounting rules that domestic companies must follow.
Could that change under the America First policy of the Trump administration?
That depends on whether the International Accounting Standards Board (IASB)—which sets International Financial Reporting Standards (IFRS)—is able to secure full funding for its operations as a sister but newer organization is now setting sustainability reporting standards, according to Trump’s appointee to lead the SEC, Paul Atkins. The Trump administration has also been removing policies from prior administration related to environmental, social, and governance (ESG) matters in the U.S.
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