Up until 2007 non U S firms that published IFRS based financial statements
Up until 2007 non-U.S. firms that published IFRS-based financial statements and wished to raise capital on the U.S. stock markets (e.g., New York Stock Exchange) were required to file with the SEC a Form 20-F that included reconciliations of both net income and shareholder's equity as measured under U.S. GAAP and IFRS. The reconciliations provided a detailed explanation of the different ways in which net income and shareholders' equity were measured under the two systems.

REQUIRED:
Assume that you are an analyst attempting to compare the financial condition and performance of Nike, which publishes U.S. GAAP-based financial statements, and Adidas, which publishes IFRS-based financial statements. Would you be pleased with the SEC's decision to drop the reconciliation requirement? Explain.

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