SEC and CESR Launch Workplan on Financial Reporting

August 2, 2006

FEI Summary

On Aug. 2, 2006, the U.S. Securities and Exchange Commission (SEC) and the Committee of European Securities Regulators (CESR) announced publication of a joint work plan. The focus of the work plan, to be implemented immediately, will be on the application of IFRS and U.S. GAAP in the U.S. and European Union (EU), respectively. As part of the work plan, the SEC will apprise CESR of policy developments related to the elimination of the need for foreign private issuers filing in the U.S. to reconcile IFRS financial statements to U.S. GAAP by 2009 at the latest, and CESR will apprise the SEC staff of policy developments related to the acceptance of U.S. and the other national GAAPs in the European capital markets under the EU Transparency and Prospectus Directives. Certain enforcement issues are also part of the work plan.