There is currently
a mixture across EU Member States of acceptable accounting standards.
Existing EU Directives have not so far succeeded in creating
a harmonized set of accounting rules. Such harmonized rules
are needed to create open, transparent European markets. Europe
will benefit in terms of lowering the cost of capital. The European
Commission proposal to adopt IASC standards is an important
step towards this goal.
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INTRODUCTION
The importance of International
Accounting Standards (IAS) has been highlighted over the last few
weeks by specific references in both the Wise Men's interim report
and the 3rd progress review of the Financial Services Action Plan:
Accounting rules are not yet harmonised.
More information on EU companies is often available in the US
than in Europe". (Wise Men p.16)
"The Committee's priorities
include, creating open, transparent European Markets; encouraging
the use of international accounting standards for all listed companies".
(Wise Men p.23)
