Europe to Impose International Accounting Standards by 2005

Europe-watchers say the European Commission is poised to require listed European companies to use international accounting standards (IAS) by 2005.

According to sources, Commission officials have been consulting with national governments and accountancy bodies for some time over amendments to the fourth and seventh accounting directives. The Commission has encouraged national governments to allow the use of IAS within their jurisdictions; France, Germany and Austria already do so. The Department of Trade and Industry's Company Law Review panel is considering allowing it under UK law.

The Commission appears to have firmed up its stance after international stock market regulators endorsed a core package of 30 IAS as a "passport" for companies seeking listings on foreign exchanges.

The committee of stockmarket regulators, (known as IOSCO) recognized there would be transitional difficulties. Where national standards produced material differences, IOSCO advised that reconciliations and interpretive disclosures would be needed.

The European Union does not have any direct input to the private-sector International Accounting Standards Committee. It is now formulating its definitive statement on accounting standards and is likely to propose an "endorsement" mechanism that will allow it to signal its approval or disapproval to the standard-setters.

With such a system in place, the Commission is likely to go ahead with the proposal for a 2005 implementation date. The "big bang" statement is expected within the next two weeks.

You may like these other stories...

By Jason BramwellThe IRS on August 19 unveiled a new online registration system for financial institutions that need to register with the agency under the Foreign Account Tax Compliance Act (FATCA).Financial institutions...
By Curtis C. Verschoor, CMAThe furor over the extensive tax avoidance measures used by technology companies such as Google and Apple has reached new heights in both the United Kingdom and the United States. Government...
By Jason Bramwell Government leaders of eight of the world's largest economies pledged on June 18 to take a tougher stance on fighting tax evasion. The Group of Eight (G8) leaders, who met in Northern Ireland,...

Already a member? log in here.

Upcoming CPE Webinars

Sep 24
In this jam-packed presentation Excel expert David Ringstrom, CPA will give you a crash-course in creating spreadsheet-based dashboards. A dashboard condenses large amounts of data into a compact space, yet enables the end user to easily drill down into details when warranted.
Sep 30
This webcast will include discussions of important issues in SSARS No. 19 and the current status of proposed changes by the Accounting and Review Services Committee in these statements.
Oct 21
Kristen Rampe will share how to speak and write more effectively by understanding your own and your audience's communication style.
Oct 23
Amber Setter will show the value of leadership assessments as tools for individual and organizational leadership development initiatives.