Speaking at last night's ICAEW dinner, European commissioner for internal markets, Frits Bolkestein hinted that a successful implementation of IAS could smooth the path to the creation of a common tax system in the EU.

'I strongly believe that EU companies need a common consolidated tax base for their EU-wide activities,' said Bolkestein. 'Accounting and taxation are closely linked, and I therefore think it is well worth examining how these common accounting standards might help us create such a common tax base.'

He went on to describe the introduction of IAS in 2005 as 'a golden opportunity' to make progress towards such a common tax base.