Europe's CFOs Back IAS.Nearly 80 percent of chief financial officers surveyed in Europe support the introduction of international accounting standards (LAS) for financial reporting by publicly listed companies listed company n → compañía cotizable listed company n → société cotée en Bourse listed company list n → . Two-thirds of those surveyed favor making IAS See iPlanet Application Server. 1. (computer) IAS - The first modern computer. It had main registers, processing circuits, information paths within the central processing unit, and used Von Neumann's fetch-execute cycle. the sole standard or an acceptable alternative to national GAAP GAAP See: Generally Accepted Accounting Principles GAAP See generally accepted accounting principles (GAAP). . Seven hundred seventeen CFOs of listed companies in 16 European European emanating from or pertaining to Europe. European bat lyssavirus see lyssavirus. European beech tree fagussylvaticus. European blastomycosis see cryptococcosis. countries were surveyed by PricewaterhouseCoopers. "CFOs in Europe clearly welcome moves towards creating a single, high-quality international financial reporting framework. Using a single standard will make life more straightforward for most companies. It will save substantial costs of preparing different information for national and international use. It will help companies compete for funds more effectively in the global capital markets and provide a level playing field See net neutrality. for companies and investors," said Mary Keegan, head of global corporate reporting at PwC. The survey asked the CFOs for their views on IAS and on the European Commission's proposal to require all listed companies in the European Union European Union (EU), name given since the ratification (Nov., 1993) of the Treaty of European Union, or Maastricht Treaty, to the European Community to submit consolidated financial reports under IAS by 2005. Seventy-nine percent of the CFOs say they favor the proposal that -- if it becomes law -- will introduce the biggest changes to financial reporting in Europe in 30 years. Keegan cites Internet usage as "probably the key driver for change," noting that 80 percent of the respondents In the context of marketing research, a representative sample drawn from a larger population of people from whom information is collected and used to develop or confirm marketing strategy. already report their results on the Internet, and that this will rise to nearly 90 percent by year-end. "CFOs know that international investors access and analyze Internet information for investment decisions -- but that data is not valid for cross-border comparisons because almost all the world's governments currently require companies to follow unique national results. Companies, just like investors, support a single global set of rules so that valid comparisons can be made," said Keegan. Recognizing that change to using IAS is not straightforward, the CFOs report concerns over internal reporting systems and human resource and training costs. At the same time, they are "positive about the change," Keegan said, as they cite benefits that include: providing better information for investors and stakeholders Stakeholders All parties that have an interest, financial or otherwise, in a firm-stockholders, creditors, bondholders, employees, customers, management, the community, and the government. , enhancing corporate reputations, lowering the cost of raising capital and facilitating economic growth. Half of those with experience using IAS say that to achieve conversion by 2005, companies should be taking action this year. Still, Kegan said, there is a "significant 'wait-and-see' minority that is not prepared to commit to a planning timetable until the recommendation is final." |
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