Accounting: Progress on Standards Convergence

A European Commission report welcomes the recent U.S. SEC proposal to simplify the filing of financial statements in the U.S. for non-American companies by eliminating the need for "reconciliation" (quantitative comparison and explanation of differences) between European and U.S. accounting standards. The Commission also notes the need to remove this reconciliation requirement for European issuers using International Financial Reporting Standards as adopted by the EU. Positive developments in Japan, Canada, China, and India are cited in the report as well.

EU Internal Market and Services Commissioner Charlie McCreevy said, "I draw encouragement from the progress made in these important partner countries. It shows that we are on the right track. I welcome all initiatives that pave the way for IFRS to become the global accounting standard." The EU is the largest jurisdiction using IFRS and fully supports a move towards common worldwide accounting standards.

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