Nicolas Véron

Global Accounting Convergence: A Race to the Bottom?

I forgot last month to post this piece, published in the Accountancy Column of the Financial Times. Just before the Pittsburgh Summit of the G20, I looked at convergence between the two main remaining systems of accounting standards (IFRS and US GAAP), and conclude that the current convergence process is becoming increasingly dysfonctional.

Click here to download the piece, which correctly predicted that a reaffirmation of the convergence goal would be the main thing the G20 leaders would have to say about accounting in Pittsburgh.

The unfinished job of restructuring Europe's banking system

Click here to download my October column, which builds again on the policy brief I co-authored with Adam Posen in June and argues that the European banking sector still needs comprehensive sorting out and restructuring for orderly credit conditions to be restored. Especially since the September general election, Germany has a pivotal role to play on whether this will happen or not. If not, the price will be a crippling drag on EU growth rates in the foreseeable future.

The piece was published on 19 October online by Caijing, on 20 October by Boersen-Zeitung as part of a special series on 'a new order for financial markets', on 26 October by La Tribune, on 12 November by Referans, and on 14 November by Cinco Dias.