U.S. Securities and Exchange Commission chair Harvey Pitt has applauded the decisions by the Financial Accounting Standards Board and the International Accounting Standards Board to work together toward greater convergence between U.S. Generally Accepted Accounting Principles and international accounting standards.
“This is a positive step for investors in the U.S. and around the world,” said Pitt. “It means that reducing the differences in two widely used sets of accounting standards will receive consideration by both boards, as they work to improve accounting principles and address issues in financial reporting.”
“For years, many have believed that a desirable goal someday would be to move towards a single set of high quality accounting standards around the world,” Pitt said. “Now the time frame has a more immediate focus. With so many new users of IAS coming in 2005, in Europe and elsewhere, there is a great opportunity to focus attention on ways to improve information for investors while working for greater convergence in both the short term and the long term.”