Where is the harmonization?

Maybe the move to international standards won't be so easy. Here is an article from Accountancy Age discussing European criticism of proposed standard IFRS#3 (here is a link to the US Exposure draft). Much of the criticism regards the inclusion of fair value accounting into the measurement process.

The European Financial Reporting Advisory Group (Efrag) has drafted a letter to the IASB expressing 'major concerns' over ammendments to IFRS3. It says the new standard would introduce unreliable fair value measurements, and claims that standard-setters are changing their approach without prior discussion.

Efrag's concern is that the IASB and FASB are seeking to reinvent financial reporting with new rules rather than harmonise the existing standards.

The new standard would have major effect on post-transaction earnings per share as a result of M&A activity. This is a key measure of a deal's success, and would lead to drastic changes in the balance sheet of acquirers.