L 340/112 Official Journal of the European Union 19.12.2008 COMMISSION DECISION of 12 December 2008 on the use by third countries’ issuers of securities of certain third country’s national accounting standards and International Financial Reporting Standards to prepare their consolidated financial statements (notified under document number C(2008) 8218) (Text with EEA relevance) (2008/961EC) THE COMMISSION OF THE EUROPEAN COMMUNITIES, Having regard to the Treaty establishing the European Community, Having regard to Directive 2004/109/EC of the European Parliament and of the Council of 15 December 2004 on the harmonisation of transparency requirements in relation to infor- mation about issuers whose securities are admitted to trading on a regulated market and amending Directive 2001/34/EC (1), and in particular Article 23(4) thereof, Whereas: 1 Regulation (EC) No 1606/2002 of the European Parliament and of the Council of 19 July 2002 on the application of International Accounting Standards (?) requires companies governed by the law of a Member State, whose securities are admitted to trading on a regulated market in any Member State, to prepare their consolidated accounts in accordance with International Accounting Standards, now commonly referred to as International Financial Reporting Standards, adopted pursuant to Regulation (EC) No 1606/2002 (hereinafter referred to as adopted IFRS), for each financial year starting on or after 1 January 2005. Articles 4 and 5 of Directive 2004/109/EC provide that where an issuer is required to prepare consolidated accounts, the annual and half-yearly financial statements shall comprise such consolidated accounts drawn up in accordance with adopted IFRS. Even though this requirement applies to Community and third country issuers alike, third country issuers may be exempted from this requirement provided the law of the third country in question lays down equivalent requirements. Commission Decision 2006/891/EC (}) provided that a third country issuer may also prepare its consolidated accounts, for financial years starting before 1 January 2009, in accordance with IFRS as issued by the Inter- national Accounting Standards Board (IASB), with GAAP 390, 31.12.2004, p. 38. o L 0] L 243, 11.9.2002, p. 1. o L 343, 8.12.2006, p. 96. of Canada, Japan or United States or with a GAAP of a third country which is subject to convergence with IFRS. Financial statements drawn up in accordance with IFRS as issued by the IASB provide users of these statements with a sufficient level of information to enable them to make an informed assessment of the assets and liabilities, financial position, profit and losses and prospects of an issuer. Therefore, it is appropriate to allow third country issuers to use IFRS as issued by the IASB within the Community. In order to assess the equivalence of the Generally Accepted Accounting Principles (GAAP) of a third country with adopted IFRS, Commission Regulation (EC) No 1569/2007 of 21 December 2007 establishing a mechanism for the determination of equivalence of accounting standards applied by third country issuers of securities pursuant to Directives 2003/71/EC and 2004/109/EC of the European Parliament and of the Council (*) provides for the definition of equivalence and establishes a mechanism for the determination of equivalence of GAAP of a third country. Regulation (EC) No 1569/2007 also requires that the Commission decision permit Community issuers to use IFRS adopted pursuant to Regulation (EC) No 1606/2002 in the third country concerned. In December 2007 the Commission consulted the Committee of European Securities Regulators (CESR) with regard to the technical assessment of the equivalence of the GAAP of the United States, China and Japan. In March 2008 the Commission extended the consultation with regard to the GAAP of South Korea, Canada and India. In its advice delivered in March, May and October 2008 respectively, CESR recommended finding US GAAP and Japanese GAAP equivalent to IFRS for use within the Community. Furthermore, CESR recommended the acceptance of financial statements using GAAPs of China, Canada, South Korea and India within the Community on a temporary basis, until no longer than 31 December 2011. () O] L 340, 22.12.2007, p. 66.