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
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

the letter to the Financial Times editor

Related reading

Fiona Westwood of Smith and Williamson.