Prem Sikka on why accounting matters

Prem Sikka has posted on his blog on the Guardian website today, with a trenchant critique of the segmental accounting changes being brought in by the IASB. Click here to read it. It’s worth it. His last paragraph, with its endorsement of why accounting matters, reflected how I feel about the subject.

Here it is:

To some observers, accounting debates may appear boring, technical and grey, but accounting practices affect taxes, perceptions of risk and the value of people’s savings, investments, pensions and access to education and healthcare. Accountancy rules affect public welfare and they should be made by a democratic organisation that is independent of big business and accounting firms.

You wouldn’t want to be caught reading that at the IASB today.

(P.S. thanks to Richard Murphy for his link to Prem’s blog)

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