PracticeAccounting FirmsPwC to rate accounting standards

PwC to rate accounting standards

PricewaterhouseCoopers has today launched a novel tool to evaluate the contribution to clear financial reporting of new UK and global accounting rules.

The aim of the ratings’ tool, which uses seven criteria for scoring, is to provide comparison between standards and their predecessors.

So far the ratings’ tool has shown controversial results.

After an initial test on three new standards and one draft standard issued by the Accounting Standards Board, the results have indicated that ‘a change is not always an improvement’.

Peter Holgate, senior technical partner at PwC, said: ‘The working presumption is that a new accounting standard is superior to the standard it replaces. However the scores that we have attributed to these standards tell us that in just half the cases we looked at, the new standards fared worse than their predecessors.’

Holgate added that the drive to develop the ratings tool was an attempt to offer a consistent approach to commenting on proposals for new standards or changes to existing ones.

In responding to discussion papers from the Accounting Standards Board Holgate said there was often the temptation to focus on one aspect, such as is it good for global harmonisation, instead of the whole reporting picture.

Related Articles

British Accountancy Awards 2018 – entries open!

Accounting Firms British Accountancy Awards 2018 – entries open!

7d Emma Smith, Managing Editor
Is the accountancy sector facing an international talent crisis?

Accounting Firms Is the accountancy sector facing an international talent crisis?

1w Lewis Silkin
RSM appoints new Chief Operating Officer

Accounting Firms RSM appoints new Chief Operating Officer

1w Alia Shoaib, Reporter
RSM announces 11 partner promotions

Accounting Firms RSM announces 11 partner promotions

2w Emma Smith, Managing Editor
BDO hires former AstraZeneca creative director as head of digital and innovation

Accounting Firms BDO hires former AstraZeneca creative director as head of digital and innovation

4w Emma Smith, Managing Editor
What does the future hold for listed accountancy firms?

Accounting Firms What does the future hold for listed accountancy firms?

1m Fergus Payne, Lewis Silkin
EY, Deloitte lead Big Four in gender pay gap reporting

Accounting Firms EY, Deloitte lead Big Four in gender pay gap reporting

1m Emma Smith, Managing Editor
Mind the gap: what accountancy firms should be doing ahead of the new gender pay gap reporting rules

Accounting Firms Mind the gap: what accountancy firms should be doing ahead of the new gender pay gap reporting rules

2m Karen Baxter, Lewis Silkin