International Accounting Standards
chairman  :  -
convenor  :  -
contact  :  ERT Secretariat
MISSION :
This Working Group presses for the development of International Accounting Standards (IAS) that take into account the concerns of Europe as well as the US, and also the views of large multinational companies as preparers of accounts.

ERT's main focus today is the work programme established by the International Accounting Standards Board (IASB). ERT's position on this work programme can be summarised as follows:

1. Conceptual Framework:

Before embarking on creating new standards, the IASB should discuss and define the conceptual framework which would guide such standards, on both sides of the Atlantic.

2. Performance Reporting:

The format of the Profit and Loss Account should be a communication tool and should reflect for investors the performance achieved by businesses.

3. Pension Accounting:

The standard should reflect the reality of the long-term character of the assets and liabilities linked to post-employment benefits.

In addition, ERT promotes convergence between IAS and US GAAP and believes every opportunity should be used to discuss this objective with US companies and opinion leaders, in order to increase motivation for convergence.

ERT has reflected its position in various papers.
KEY MESSAGES :
Letter to Tom Seidenstein (IASC Foundation) - Review of the Constitution: Proposals for Change
February 2005
ERT welcomed the invitation of the Trustees of the International Accounting Standards Constitution Foundation for public comments on the consultation document, containing proposals to amend the IASC Foundation Constitution. ERT expressed some concerns and welcomed several improvements.
PDF
ERT Position Paper: IFRS and Convergence of Accounting Standards
September 2004
ERT was very concerned about events that impacted the Accounting Standard setting process and full convergence. The main areas were: IAS 39 (Hedging Instruments) and the move of the Commission towards "carving out", IFRS 2 (Share based payments) and the mandatory introduction of option expensing.
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The Demands of the European Round Table of Industrialists on IFRS
March 2004
The demands of ERT on IFRS are:

- The convergence of IFRS and US GAAP: one set of high quality based accounting standards is very important for European industry.
- Improvement of existing standards: ERT is ready to work with IASB to elaborate better and convergent standards.

ERT does not support a "fair value" driven single performance report. The opportunity for convergence to global standards should not be wasted through the inability to agree on a common position.
PDF
Letter to Commissioner Bolkestein
June 2003
The Commission proposed the endorsement of IAS 1 to 40, while postponing IAS 32 and 39.

ERT urged the Commission not to endorse IAS 39 without modifications to both the principles and its mode of application.

ERT asked also for extensive consultations on the proposed "Performance Reporting".
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Letter to Sir David Tweedie (IASB): Financial Reports
December 2002
Users of financial reports are generally looking to the underlying performance of the business and the sustainability of that performance.

The proposed New International Financial Reporting Standards (IFRS) appear to be designed to put emphasis on the question "does the balance sheet closely reflect today's market value of the Business?"

In a letter to Sir David Tweedie, Chairman of the IASB, ERT expressed its view and indicated what is of paramount importance in formulating any new standards.
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