UK views on convergence costs

According to the UK Financial Services Authority, the so-called “roadmap” for the Securities and Exchange Commission (SEC) to determine that IFRS are equivalent to US GAAP could potentially lead to a more transparent and lower cost global capital market in which investors are better informed and companies can access sources of capital more cheaply. However, across all stakeholder groups in the UK (preparers, auditors, investors and regulators) there is growing concern that the costs of convergence may outweigh the benefits being sought. For details, read the FSA publication Financial Risk Outlook 2007 (particularly Section F).