The effort to achieve convergence by ushering in a single accountancy system for the global economy is getting hammered in nearly every aspect by one of Europe's key figures in that sector.Pervenche Berès, the chairwoman of the European Parliament's Economic and Monetary Affairs Committee, is warning that the world's present governance system for accountancy institutions could lead to problems, including "the financialization of the [world] economy."

In her role as chairwoman, Berès enjoys international status in the development of accountancy. She explained that financialization from a company's viewpoint means that "decisions are no longer taken on economic or employment considerations, but mainly on how financial markets will react. It led to management boards being more concerned about financial markets than about the true economic well-being of the company," she said, and explained that it would ignore all considerations except for short-term profit.

Register or login for access to this item and much more

All Accounting Today content is archived after seven days.

Community members receive:
  • All recent and archived articles
  • Conference offers and updates
  • A full menu of enewsletter options
  • Web seminars, white papers, ebooks

Don't have an account? Register for Free Unlimited Access