Case 3-7 Use of Form 20-F

In 2007, the SEC modified its position on the Form 20-F requirement when it issued; Acceptance from Foreign Private Issuers of Financial Statements Prepared in Accordance with International Financial Reporting Standards without Reconciliation to GAAP. This rule amends Form 20-F to accept from foreign private issuers in their filings with the SEC financial statements prepared in accordance with International Financial Reporting Standards as issued by the International Accounting Standards Board without reconciliation to generally accepted accounting principles as used in the United States.

Required:

What was the SECs rationale for this decision?

How did the American Accounting Association respond to the SEC proposal?