Barnier reaffirms support for convergence

Europe’s markets chief has reaffirmed support for convergence of US and international accounting rules.

The European Union’s internal markets chief, Michel Barnier, is in the US to discuss initiatives to strengthen the global financial system. In a joint statement with US Treasury Secretary Tim Geithner, Barnier “reaffirmed their support for the G20 Leaders commitments on accounting convergence”.

The statement comes a day after Barnier told Washington’s European Institute there was growing impatience at US progress.

“I appreciate that the US authorities have made progress towards convergence. But in the EU, we are getting impatient,” he said.

The US has pledged to make a decision on whether to adopt international accounting standards next year, while it investigates the impact of the new accounting rules on US markets.

Meanwhile, the Financial Accounting Standards Board and the International Accounting Standards Board are working feverishly to converge their two accounting codes.

Further reading: Barnier tells US that Europe is "getting impatient" on accounting convergence