Europe Moves to IAS, PwC CEO Urges U.S. Adoption
European Rules and Resources
The IAS Regulation adopted  on June 7, 2002 by the Council of the European Union (EU) requires public companies to prepare their consolidated accounts in accordance with IAS from 2005 onwards. The full text of this regulation, along with news of other developments, can be downloaded from the EU's accounting site .
Political oversight will be provided by a newly-established Accounting Regulatory Committee chaired by the European Commission and composed of representatives of the member states. Technical advice will be supplied by EFRAG, a European Financial Reporting Advisory Group comprised of accounting experts from the private sector. EFRAG launched a new Web site  on June 13, 2002 so interested observers could follow current developments and comment when appropriate.
PwC Calls for U.S. To Follow Suit
Speaking at the Munich Economic Summit on June 8, 2002, PwC CEO Samuel DiPiazza called  on U.S. companies to move away from the current system of U.S. generally accepted accounting principles (U.S. GAAP) to a framework similar to IAS. In prepared remarks, Mr. DiPiazza said, "We support the EC plan for single capital market – an accounting and auditing strategy based on convergence around global standards (IAS and ISA). We urge other countries, not least the U.S., to do likewise. When Europe moves to IAS, it will be far more difficult for others to abstain." He was also widely quoted as saying, "The movement must be towards IAS. It may surprise you to hear this, but we believe that U.S. GAAP needs to change from a complex, debilitating system to something closer to an IAS framework."
Mr. DiPiazza's comments are especially noteworthy since he is based in New York and currently serves on the board of trustees of the Financial Accounting Foundation, the organization that oversees the U.S. GAAP-maker, the Financial Accounting Standards Board. Read the full text of his prepared remarks on PwC's Web site for chief financial officers, CFODirect .