The U.S. Securities and Exchange Commission and the Committee of European Securities Regulators published a joint work plan focused on financial reporting, advancing the cause of cross-Atlantic markets.

The plan, which will be implemented immediately, is a direct output from the December 2005 meeting between SEC chairman Christopher Cox and CESR chairman Arthur Docters van Leeuwen.

The main focus of the work plan is the application by internationally active companies of International Financial Reporting Standards and U.S. Generally Accepted Accounting Principles in the U.S. and the European Union, respectively. In addition, the staff of the SEC and CESR will forge a closer dialogue on the modernization of financial reporting and disclosure information technology, and regulatory platforms for risk management.

The close co-operation between the staff of the SEC and CESR on the application of IFRS and U.S. GAAP in the U.S. and the EU will promote: the development of high quality accounting standards; the high quality and consistent application of IFRS around the world; full consideration of international counterparts’ positions regarding application and enforcement; and, the avoidance of conflicting regulatory decisions on the application of IFRS and U.S. GAAP.

In practical terms, as part of its regular review of corporate filings, the staff of the SEC will review issuers’ implementation of IFRS in the U.S. Staff of CESR members also will continue to review U.S. GAAP implementation by U.S. issuers in the EU.

”As our markets grow more sophisticated, so must the relationships among regulators,” Cox said. “The work plan demonstrates the intention of the SEC and CESR to have a forward-looking dialogue on key emerging issues, as well as take practical steps to encourage high-quality and consistent application of IFRS. The result will be greater protection and better disclosure for investors, particularly as they seek investment opportunities across the Atlantic.”