PracticeAuditEurope and US to work on converging standards

Europe and US to work on converging standards

EU and US to negotiate closer ties on accounting standards after meeting in Washington

Detailed negotiations on further converging the accounting and auditing standards of the United States and the European Union (EU) should follow next month’s EU-US summit in Washington, the European Commission has said.

Link: Convergence roadmap ‘all motorways, no exits’

In a detailed policy paper, created in preparation for the June 20 meeting, Brussels said: ‘The EU and the US are convinced of the need to increase convergence and acceptance of functional equivalence in key areas such as accounting and audit standards’.

It said the summit should appoint ‘direct competent negotiators on both sides in the respective agreed sectors, to draw up within six months timetabled implementation plans to achieve to the fullest extent possible the objectives set out’ (in its paper).

The result would be a mix of compulsory legislation and non-binding guidelines, it said.

Brussels also noted how trans-Atlantic talks under a EU-US ‘financial markets regulatory dialogue’ had already solved some implementation problems associated with the Sarbanes-Oxley Act; helping EU companies de-register from US stock exchanges; and starting to move together European and American accounting standards.

‘In the near future, recognition of International Accounting Standards (IAS) for European issuers in the US should be obtained’, noted the paper, to help create ‘a stronger EU-US partnership and a more open market for the 21st century’.

Related Articles

PwC found negligent by US judge over Colonial Bank's $2bn fraud

Audit PwC found negligent by US judge over Colonial Bank's $2bn fraud

3w Alia Shoaib, Reporter
Deloitte South Africa investigated over Steinhoff audits

Audit Deloitte South Africa investigated over Steinhoff audits

1m Alia Shoaib, Reporter
Top 5 audit fines of 2017

Audit Top 5 audit fines of 2017

1m Alia Shoaib, Reporter
PwC replaces EY as Domino's auditor

Audit PwC replaces EY as Domino's auditor

1m Alia Shoaib, Reporter
The ‘uncomfortable truth’ behind FRC’s Big Four fines recommendations

Audit The ‘uncomfortable truth’ behind FRC’s Big Four fines recommendations

1m Carl Johnson, Stephensons
BDO holds off Big Four to retain top position as AIM auditor

Audit BDO holds off Big Four to retain top position as AIM auditor

2m Alia Shoaib, Reporter
FRC urged to fine Big Four firms penalties over £10m

Audit FRC urged to fine Big Four firms penalties over £10m

2m Alia Shoaib, Reporter
EY to audit Standard Chartered bank

Audit EY to audit Standard Chartered bank

2m Alia Shoaib, Reporter