09 December 2008

McCreevy outlines future measures for accounting

In the longer term, the creation of a single high-quality global accounting standard, potential pro-cyclical effects of fair value accounting and the treatment of off-balance-sheet exposures are essential.

The creation of a level playing-field between the EU and the US to avoid additional pressure on European companies due to divergent accounting treatments between IFRS and US GAAP is the main short term priority for the Commission.

 

Speaking at the FEE Conference on Audit Regulation Commissioner McCreevy underlined that the amendments to the reclassification rules for financial assets and the guidance on the application of fair value measurement in inactive markets recently issued by the IASB were essential to achieve these objectives. “The IASB should now give urgent consideration to the three additional issues identified by the Commission at the end of October and, where appropriate, come forward as requested with technical solutions in time for the publication of year end results”, he said.

 

In the longer term, the creation of a single high-quality global accounting standard, potential pro-cyclical effects of fair value accounting and the treatment of off-balance-sheet exposures are essential. Furthermore, any major and lasting changes to IFRS must be subject to due process. “It would be a mistake to politicise the IASB's standard-setting work, which must remain independent”, McCreevy said.

 

The Commission will adopt two decisions which determine that the GAAPs of US, Japan, China, Canada, South Korea and India are found to be equivalent to IFRS as adopted by the EU within the next few dates.

 

The Commissioner also announced a public consultation in the first half of next year on the application of ISAs.

 

Full speech

 

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