ACCOUNTANCY: NO MAJOR EU INCOMPATIBILITIES WITH INTERNATIONAL ACCOUNTING STANDARDS.

FEE examined the situation as at December 31, 1998, and conducted a detailed comparison between the wording of the IASs and the Directives on about 20 issues, taking account of the views of the European Commission and Contact Committee, and the interpretations in Member States. FEE is calling for clarification by the Commission on:u the application of the principle of substance over form;u the presentation of construction contracts in the balance sheet;u employee benefits: future salary increases related to promotion;u whether decommissioning costs can be included as part of production costs;u the preparation of consolidated accounts in reverse acquisitions;u the intention to use the right of set off in netting.As accounting becomes more international, International Accounting Standards are likely to play a more...