European Commission comments on US convergence in submission to IASB

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10 Mar, 2011

The European Commission (EU) has commented on IFRS-US GAAP convergence in its comment letter on the IFRS Foundation Trustees' Public Consultation Status of Trustees' Strategy Review.

An extract follows:

... the next 18 months will be critical in determining whether the goal of a single set of globally accepted standards is achieved. The SEC's forthcoming decision about the incorporation of IFRS in the US financial reporting system is fundamental in this context...

In our view, convergence is not an objective on its own but only a means to facilitate the adoption of a single set of globally-accepted accounting standards, in line with the G-20 recommendations. However, convergence cannot be a never-ending process. Moreover, convergence between IFRS and US accounting standards imposes costs on EU companies that are increasingly difficult to justify without a firm commitment by the US to IFRS.

Click for EU comment letter (link to IASB website). Our comment letter on the IFRS Foundation Trustees' Public Consultation is available Here (PDF 80k).

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