The
paper shows that the increased globalization of companies has led to a dilemma for investors because accounting
standards in various capital markets are not always reliable. It shows too that in an effort to increase the reliability of
financial information in capital markets the SEC seeks to maintain the high
quality of financial
reporting in the U.S., while working towards establishing a high quality financial reporting structure worldwide. This paper summarizes the issues presented in the SEC's concept release on International Accounting Standards. These issues include: the five elements of global financial reporting; exceptions to rules for foreign private issuers using accounting standards that differ from GAAP; and the three criteria for assessing the International Accounting Standards Committee.