The International Accounting Standards Board should abandon its efforts to converge global reporting rules with U.S. accounting standards, and focus instead on making its standards better and less complex, according to a body that speaks for the European accounting profession.
FEE (the Federation of European Accountants) says it supported International Financial Reporting Standards and believed that the IASB’s convergence strategy with U.S. Generally Accepted Accounting Principles (and to a lesser extent, other national standards) had “delivered good results.” But with so many countries now using IFRS, or revising their national standards to align with IFRS, further convergence would be counterproductive as it would only lead to further complexity “with hardly any additional benefit to investors,” FEE said in a policy paper.
