Europe could jeopardise the global effort to produce a single accounting standard if it goes ahead with the development its own versions, says Gerrit Zalm, who steps in as chairman of the trustees of the International Accounting Standards Board today.
Zalm, a former Dutch finance minister, said earlier this week one of his first priorities would be to prevent fragmentation of standards in Europe and trying to get rid of the existing carve-out.

‘There is a growing acceptance of the need for international accounting standards as the basis of financial reporting for the world’s rapidly integrating capital markets. It is the role of the trustees to help ensure that progress continues on a worldwide basis,’ Zalm said after his appointment.

His comments come as the US Securities and Exchange Commission considers whether it will allow foreign companies to file accounts under international financial reporting standards without the costly reconciliation into US equivalents, which can amount to millions of dollars.

Further reading:

IFRS for the US, Herz says

SEC cautions against individual versions of IFRS