FRC fears EU may adopt own IFRS

The FRC has warned it expects more interference from the European Union in
the IASB’s setting of accounting standards.

The accountancy regulator issued the warning in its annual report released

The FRC said: ‘We note with concern the recent increase in political pressure
on both the IASB and FASB. Whilst we remain open to identifying improvements in
how fair value accounting is applied, we are of the view that, in those limited
areas to which it applies, it is more appropriate than any alternative so far

‘We continue to have significant concerns that the EU might adopt its own
version of IFRS rather than the standards as published by the IASB.’

At the end of last year, European mandarins stopped short of forcing through
a much larger carve-out of fair value rules only after the IASB
emergency amendments.

This prompted fears a precedent was being set where accounting guidelines
were being influenced by politicians.

Further reading:

battles over fair value carve out

Related reading

Fiona Westwood of Smith and Williamson.