IASB must hold off tweaking existing standards, says ICAEW

Tweaks and changes to current international accounting standards must be
avoided, according to the ICAEW.

The International Accounting Standards Board’s proposals to change “other
comprehensive income” in financial reports (IAS 1) comes at a time when users
and preparers of reports are dealing with other accounting projects of great
importance, said the institute.

“Small changes to one standard can result in a knock-on effect on other
standards, with further changes to IFRS required. This approach can lead to a
reduction in clarity, which is the opposite direction of where IFRS should be
heading,” said Dr Nigel Sleigh-Johnson, head of ICAEW’s Financial Reporting
Faculty.

“The IASB needs to establish a clear and robust framework for the
presentation of profit and loss and other comprehensive income. That will make
it easier to determine what should be reported where, and enable the board to
address the pressing questions around the way that performance is reported.”

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