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Concerns raised over application of IFRS in the UK
Accountancy News |
27/08/2010
Concerns have been raised over the application of financial reporting standards in the UK, after the government admitted it has been warned over failings in the current system.
The Department of Business, Innovation and Skills (BIS) confirmed that contact had been made by a number of concerned parties, including Urgent Issues Task Force member Tim Bush.
Last week, the senior accountant wrote to the BIS to warn that the International Financial Reporting Standards (IFRS) have not been properly implemented in the UK.
Having reviewed the work of the Accounting Standards Board through his role on the task force, Mr Bush said he had discovered a "regulatory fiasco" in UK financial reporting.
Ian Mackintosh, chairman of the ASB, responded to the claims, dismissing them as "simply wrong".
He commented: "The ASB is made up of eminent and experienced professionals and it is both consultative and responsive to market need."
However, it now appears that Mr Bush may not be a lone voice.
A spokesperson for the BIS said the accountant was "not alone in expressing concerns" over the way IFRS have been interpreted by the ASB, compared to other countries in Europe.
The Daily Telegraph quoted an unnamed senior accountant, and a senior director of a leading City group, who both offered support for Mr Bush's comments.
According to the latter, who also wished to remain anonymous, the IFRS analysis is "very important".
"There is certainly an issue here than needs to be addressed urgently," they stated.
"It's more cock-up than conspiracy but it's vital these standards are fit for purpose and before they are rolled out to other companies, I can't see how a full review can be avoided legitimately."
Concerns over IFRS could come as a blow to the Accounting Standards Board as it gears up to extend the scope of the regime to small and medium-sized enterprises.
Posted by Jon Aspinell
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