Global body calls for war on complexity

The world’s largest accounting body has the current complexity in financial reporting “cannot be allowed to continue”.

The Global Accounting Alliance, representing institutes and professional bodies from the leading economies, said the real question was how to achieve simplification.

“No single compelling courseof action was identified which would speed the demise of complexity.”

It added: “There was unavoidable complexity, which related to the growing complexity of businesss and the accounting which underpinned it. And there was avoidable complexity, the simple accretion of unnecessary detail. Accepting one while ridding reports of the other has to the aim.”

The GAA’s report comes after a series of summits in London Beijing and New York.

The GAA published support for a single set of international standards and that they should be principles based. It also said the independence of the IASB – the body overseeing international standards – should be preserved.

These goals would be pursued, the GAA said, by lobbying “all the players in the financial reporting debate”.

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Global Accounting Alliance report