Schapiro backs international standards

The head of the US financial regulator said she is committed to international accounting convergence, in comments which edge the world’s largest economy closer to adopting a global reporting language.

Mary Schapiro, Chairman of the US Securities and Exchanges Commission, spoke of her “commitment” to a global accounting language in a speech delivered to the technical committee of the International Organisation of Securities Commissions in Basel, Switzerland, The Financial Times reports.

“We must not lose sight of the fact that the purpose of accounting standards is to provide a clear and accurate picture of a company’s financial condition for investors ... I remain committed to the goal of a global set of high-quality accounting standards,” Ms Schapiro said.

The international accounting rule maker and its American counterpart have been busy harmonizing their two accounting systems with a view to establishing one language.

During the last year political interference, disputes on rules and criticism of the international standard setter’s approach has threatened to derail the project.

Even if full convergence is reached, the SEC would still need to sign off to bring the rules into effect.

But a series of factors, including a renewed focus on the issue at the Pittsburgh G20 summit, combined with the appointment of a moderate SEC chief accountant, has given international accounting proponents reason to be optimistic.

Read the full story: SEC seeks common goal for accounts