If you are a registered user please log in to see more postings.

The AAO Weblog covers accounting issues and current events as they relate the practice of investment analysis.

Apr 18

Written by: Jack Ciesielski
4/18/2005 10:58 AM 

The Wall Street Journal reports that Charlie McCreevy, the European Union's chief of internal markets, is visiting the U.S. partly to mend fences with Paul Volcker, the chairman of the foundation that funds the International Accounting Standards Board. The two have been at loggerheads as Volcker's group tries to bring international accounting standards to reality, while McCreevy does his best to keep a provincial European flavor to them.

In addition to meeting with Mr. Volcker, McCreevy's travels bring him face to face with Treasury Secretary John Snow and SEC Chairman William Donaldson for the purpose of seeking easier de-listing from U.S. exchanges for companies that don't want to play by Sarbanes-Oxley rules.

Perhaps a new race for the bottom is starting up, under the guise of international harmonization. If firms don't want to play by U.S. rules, then by all means they should be allowed to leave. You have to wonder if such moves are short-sighted; the jury is not out yet on the increased costs of compliance.