Accounting convergence on track says EU

Moves to achieve convergence between international accounting standards and
their US equivalents are making progress, Charlie McCreevy said yesterday.

The EU Internal Market Commissioner said the agreed ‘roadmap’ towards
recognising the separate accounting rules would avoid the need for costly
reconciliations, reports

‘We are very satisfied with the progress being made,’ McCreevy said.

An EU report also indicated similar progress towards convergence with
Japanese and Canadian accounting standards – Europe must decide by 2009 whether
the standards are ‘equivalent’ to IFRS so that foreign companies listed in the
EU can avoid the cost of filing separate accounts.

His comments come in the wake of calls from the UK’s senior financial
reporting regulator, FRC chief Paul Boyle, who said standard setters should
concentrate on improving existing international accounting standards rather than
creating a single system.

Related reading

Fiona Westwood of Smith and Williamson.