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

Apr 25

Written by: Jack Ciesielski
4/25/2005 7:25 AM 

Things are heating up in the area of international convergence of accounting standards. SEC Chairman William Donaldson met with the European Union's chief of internal markets, Charlie McCreevy last Thursday: the topic was setting a timetable for the day when foreign filers no longer have to provide a reconciliation of their foreign-basis figures to U.S. GAAP amounts.

Their goal: to eliminate that requirement for foreign private issuers using International Financial Reporting Standards as early as possible between now and 2009 at the latest.

An admirable goal, and one that will take hours of review and haggling over adjusting US and IASB standards. SEC chief accountant Don Nicolaisen gave a speech at Northwestern University on the plans he and his staff have developed for making this happen - down to a detailed "convergence roadmap." If you're an investor, be grateful; you're going to be able to process more information with less effort once this is done. If you're an accountant with an interest in international reporting, be grateful too. Your job security is assured.