McCreevy threatens to give IASB cold shoulder

EU internal market commissioner Charlie McCreevy has warned the International
Accounting Standards Board that its small and medium-sized business standards
must be compatible with European guidelines, or the body will face being frozen
out by Brussels.

McCreevy told an ACCA meeting in Ireland that the European Commission would
actively engage in a public consultation following its issuing of draft SME
accounting standards. ‘I have made it clear already that only simple,
easy-to-apply standards will be acceptable to us,’ said McCreevy

‘Nobody should assume that the standards will be automatically transposed
into European law.’

McCreevy’s comments could dovetail with Brussels’ own plans to review EU SME
accounting requirements.

He said: ‘The directives already contain exemptions from some accounting
requirements for SMEs. We will need to review the existing rules to assess
whether or not they are relevant for SMEs today.’

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Fiona Westwood of Smith and Williamson.