IFRS under further attack from the Swiss

The International Finacial Reporting Standards developments have come under further attack, this time from SwissHoldings, the organisation of Swiss-based multinational enterprises.

Peter Baumgartner, a SwissHoldings director, responded to the scathing criticism by Michael Starkie, BP chief accountant, on the direction of the IFRS developments, in a letter to the Financial Times yesterday.

‘The International Accounting Standards Board's recent thrust has led to financial reporting that is not reflecting business reality in many areas. Particularly perturbing is that it is not properly prioritising the practical information needs of investors and analysts, the ultimate users of published financial statements,’ Baumgartner said.

‘SwissHoldings, a business organisation with some of its 46 multinational member companies among the first IFRS preparers, hopes that the International Accounting Standards Committee Foundation's current review will find a way to redirect the (International Accounting Standards Board)'s efforts better to address the concerns of the business community. The benefits of globally accepted IFRS will be reaped only if accounting follows business.’

Further reading:

Starkie attack of IASB triggers further slating

BP chief accountant slams 'unhelpful' IFRS

Read the letter to the Financial Times editor