Can we leap the harmonization hurdles?
Article Abstract:
Accounting standards across the European Community (EC) are being harmonized in anticipation of the single European market of 1992, but further harmonization is necessary. Christopher Nobles in his book 'Accounting Harmonization in Europe - Towards 1992' states that there are two systems of financial reporting in the EC, the micro/professional which seeks to provide information to financial statement users, and the macro/uniform which mainly serves the state for taxation purposes. The development of the international capital markets has made harmonization desirable, but it will take time to achieve. In the meantime, Nobles proposes that firms publish dual principle corporate reports that provide an additional set of financial statements that are compiled in accordance to international accounting standards to go with accounts prepared to local standards.
Publication Name: Accountancy
Subject: Business
ISSN: 0001-4664
Year: 1990
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Eighth Directive: saluting the right flag
Article Abstract:
British accountants were relieved when the European Community Eighth Directive concerning auditor independence permitted auditors to provide non-audit services to clients, and effectively authorized the Institute of Chartered Accountants to bestow qualifications on members. Great Britain's Department of Trade and Industry has proposed that auditors be rotated every five years, and that restrictions be placed on the provision of non-audit services. The Institute rejected these proposals during its Feb 1987 Council meeting on the grounds that the proposals were unworkable. The Institute has proposed that audit committees should be established at all public companies.
Publication Name: Accountancy
Subject: Business
ISSN: 0001-4664
Year: 1987
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Demands of a different environment
Article Abstract:
The accounting standards of the UK, Europe, and the US differ. It is proposed that a European Forum of Standards-Setters be established to help resolve differences and reconcile discrepancies among accounting methods so that trade can be more smoothly effected. European countries are inclined to adopt US standards, particularly France and Holland. Great Britain remains behind a system of its own that many countries feel is too self-protective and malleable. Europeans and the UK must resolve internal differences before trying to synchronize with US practice.
Publication Name: Accountancy
Subject: Business
ISSN: 0001-4664
Year: 1987
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