1. The SEC has lifted its requirement that foreign companies, which have used IFRS as the basis for preparing their financial statements, must reconcile their financial statements using U.S. GAAP in order to be eligible to list their shares on U.S. stock exchanges. Why did this happen?

a. The SEC recognized that IFRS is of high quality and is capable of ensuring adequate disclosures for the protection of investors and the promotion of efficient markets.

b.The adoption of IFRS by the European Union in 2005 had not caused any market disruption or loss of investor confidence.

c.Many US companies had already invested in European companies that reported under IFRS, and they had been satisfied that IFRS was of high quality.

d.All the answers are correct