Delays plague global convergence

Delays plague global convergence

Convergence of US and European accounting standards into a global GAAP has been hit by delays chiefly because of French-led opposition to rules governing how companies should report on financial instruments such as derivatives. The European Union (EU) missed a key deadline for endorsing about 35 international accounting standards by the end of 2002.

Some European banks and insurance companies are demanding substantial changes to the International Accounting Standards Board's (IASB) complex standards on financial instruments, which are based on US financial reporting rules. They are concerned that the standards will inject volatility into their profits and balance sheets.

Belgium, Italy, Portugal and Spain also objected to the standards, and the European commission pressed the IASB to embark on a series of public hearings that will start next month. The European Commission, the EU's executive, is now unlikely to attempt to endorse the international accounting standards until June.

(Source : http://www.accountancymag.co.uk/)

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