Global convergence still failing
The drive for global convergence in accounting standards is still failing as many countries continue to show major differences between domestic and international standards.
A new survey of accounting standards in 62 countries chosen for their economic importance, and representing some 95% of the world’s gross domestic national profit, reveal today that half have not implemented or proposed new rules to reduce disparities.
And experts predict a rise in those differences as international accounting standards are updated.
Only a third are responding to the challenges of convergence with an active agenda and proposed changes to national requirements, according to the 2001 GAAP report conducted by the world’s seven largest accountancy firms.
Brian Schearer, technical partner at Grant Thornton, said: ‘In an age of significantly increasing international investments and financial reporting on the internet, the need for a common worldwide financial language and framework for reporting is quickly making diverse national standards obsolete.
‘Governments, regulators, investors and the accounting profession all need to rededicate themselves to achieving convergence of accounting standards at the earliest feasible date.’
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