US’s influence will wane without IFRS, warns EC

THE US’ international influence will wane if it fails to sign up to international financial reporting standards (IFRS), the European Commission has warned.

The EC said it was costly to convert accounts between IFRS and the US, and European companies would find it difficult to justify unless the US was committed to IFRS. It suggested that the non-IFRS countries might be blocked from overseeing the IASB, reported the FT.

The comments were in response to a review of the IASB by its oversight body the IFRS Foundation.

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