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The next step forward would be technical convergence of IAS/US GAAP and a permanent recognition of equivalence of accounting standards. The Commissioner pointed out that Japan too could participate in this process, and also pled for an agreed timetable and roadmap.
The Commission has to decide on IAS/US GAAP equivalence at the beginning of next year. “We are not only committed to globally accepted accounting standards but also to working towards globally acceptable auditing standards. A mechanism allowing for their endorsement should be in place when our proposal for the 8th company law directive is adopted by the Council and Parliament – hopefully before the end of 2005”, Mr McCreevy said.
With regard to better regulation the Commissioner pointed out that “the principles of better regulation should also form the basis of our action. Regulators, the profession, and industry should – before demanding interpretations – ask themselves: Is it really necessary to have detailed interpretations of everything? In my perception, an interpretation should only be issued if it adds value.”