IFRS “legally flawed”, say readers
Readers vote overwhelmingly in agreement with legal opinion suggesting IFRS is not compatible with company law
THE ASSESSMENT made by QC George Bompas that IFRS has substantial legal flaws is valid, according to Accountancy Age readers.
Of the 70 readers polled, 83% agreed there are inconsistencies between IFRS and existing company law and the standards require radical change, while the remaining 17% felt the system is broadly compatible with company law.
Bompas said last month that directors must override the accounting standards in order to comply with competing legislation.
The opinion, commissioned by an investor group, identified inconsistencies between IFRS and existing company law and suggested that directors override the accounting standards in order to comply with competing legislation.
According to Bompas, certain outcomes from the accounting standard that governs how banks provision against loan losses, are contrary to the true and fair view.