Accounting standards chief Sir David Tweedie has sought to clarify reports of
a study which found that accounting rules had caused confusion around M&As.
In a letter to the
FT, Sir
David said that it was important to note that the transactions surveyed in the
report by the
Financial Reporting
Council occurred in 2008, before the current version of IFRS 3
Business Combinations came into effect.
“The revised standard addresses many of the application challenges referred
to by the FRC study. Indeed, page 11 of the FRC report acknowledges this,
stating that the revised standard ‘should lead to a step-change in the recording
of intangible assets in future audited accounts’,” Sir David said in the letter.
Further reading:
Accounting
for M&As “poorly applied” by companies, warns watchdog