Chairman Sir David Tweedie said: ‘If the European Commission adopts the proposed filter mechanism it would be an impediment to progress. They’ll find industry won’t like this at all.’
The European Commission issued a landmark paper yesterday recommending that all EU-listed companies adopt one set of standards by 2005.
But, the edge was taken off the groundbreaking announcement with a proposal to use a filter mechanism that could result in the rejection of IASs if deemed unacceptable.
Sir David also warned that if the EU adopted the filter proposal then the US could follow suit. ‘It would be awful if they [the EU] did that. It will encourage the US’ SEC to do the same, he said.
The US profession’s watchdog, the Securities and Exchange Commission, is currently sifting through returned consultation papers in a bid to decide whether to implement IASs instead of US GAAP. It is feared that the EU’s proposal could push the SEC to do the same resulting in three sets of rules instead of one.
Sir David proposed the EU adopt the rules unconditionally but also participate in the IAS Committee’s development process in order to get its views across.
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