Mr McCreevy is to meet with the chairman of the International Accounting Standards Board (IASB), Sir David Tweedie, in the next few weeks to discuss the new international accounting standards.
The Commission adopted a regulation in September 2003 making the use of most of the International Accounting Standards compulsory throughout the EU from January 2005. The aim is to make EU accounts compatible with those produced in the US and the rest of the world.
A bone of contention, however, is IAS 39, the standard used to show the impact of derivatives on accounts, which, the Commission feels does not make sufficient provision for EU companies. As a result of opposition, particularly from French banks, this standard was not fully adopted by the EU (see Euractiv 13 June 2003)
At the forthcoming meeting, Commissioner McCreevy will push for a revised version of IAS 39. He is also concerned at the accountability of the IASB. The board, which was set up in 2001 is an independent, privately funded body, which aims to develop a globally accepted set of accounting standards. Because of this structure, the Commission has no direct say in the drafting of rules, although it has to approve them before they become EU law.
The IASB is also to hold meetings with representatives of industry in February to discuss the IAS39 and is expected to meet with opposition from bodies such as the Comité Européen des Assurances, which represents national associations of insurers. They have criticised the board’s proposals.
The harmonisation of accountancy rules and practices could be further boosted by moves to facilitate the movement of accountants themselves. Accountancy organisations across Europe are working to standardise qualifications across the EU.
One of the problems with the initiatives in financial services is that in many areas and member states they have not been implemented. In December 2004, Commissioner McCreevy showed his determination to tackle this by backing Commission enforcement action against member states which have not implemented existing Financial Services Action Plan legislation.
