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28 Jul 2011
INTERNATIONAL FINANCIAL reporting standards should be adopted by major US companies in a 'Big Bang'-style simultaneous transition, the ICAEW has argued.
Dr Nigel Sleigh-Johnson, head of the institute's Financial Reporting Faculty, claimed switching in one fell swoop is evidentially better, as gradual transitions like those of private UK companies "can result in a rather incoherent and complex accounting framework".
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Simultaneous transition is "the best strategy to minimise market disruption" and is "easier for everyone", said Sleigh-Johnson, calling for a well-understood deadline and sense of purpose.
US regulator the SEC has coined the phrase condorsement - a marriage of convergence and endorsement - to describe one possible method for switching to IFRS.
In a staff paper it mooted the idea of a staged transition process lasting between five and seven years, but the ICAEW said such a timetable is "optimistic", claiming: "We think the process, based on the outlines in this paper, is likely to take significantly longer."
Last month, SEC commissioner Kathleen Casey called on the regulator to stop dragging its heels and participate fully in convergence, saying it had an essential role to play in the development of global financial reporting standards.
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Briefings
If budgeting is to have any value at all, it needs a radical overhaul. In today's dynamic marketplace, budgeting can no longer serve as a company's only management system; it must integrate with and support dedicated strategy management systems, process improvement systems, and the like. In this paper, Professor Peter Horvath and Dr Ralf Sauter present what's wrong with the current approach to budgeting and how to fix it.
In this white paper CCH provide checklists to help accountants and finance professionals both in practice and in business examine these issues and make plans. Also includes a case study of a large commercial organisation working through the first year of mandatory iXBRL filing.
AccountancyAgeInsight is a frequently updated resource centre for finance professionals, offering a free and easy-to-use digital library of briefings, white papers and other information resources. 
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