Testers pan controversial standard
Plans to introduce a controversial international accounting standard before 2005, which would change the way financial performance is presented in accounts, could be scrapped after adverse reaction from testers.
Plans to introduce a controversial international accounting standard before 2005, which would change the way financial performance is presented in accounts, could be scrapped after adverse reaction from testers.
Link: IAS campaign special
The joint project between the International Accounting Standards Board and its UK counterpart would have seen income statements changed to a matrix format, and would replace the profit and loss account, along with the statement of total recognised gains and losses.
It had been anticipated that the standard would be ready for early adopters by 2005 before then becoming mandatory in 2006.
This deadline may now be pushed back, however, after many companies testing the proposals reportedly struggled with the new format.
‘The board is going to have a look at the project to see if it is still going in the right direction,’ said a source close to the IASB. ‘Based on the somewhat critical remarks from testers, who in the most struggled with it, the board could well decide to delay the project.’
The IASB was unavailable to comment. But the original timetable for the IASB’s reporting comprehensive income standard would have seen a draft rule issued before the end of the year, and was anticipated to spark significant opposition from businesses and representative bodies.
A final standard would have followed no earlier than the second quarter of 2004.
If the board decides to delay the project, it is unclear when a draft rule would eventually be released.
The numbers you crunch tell a story. Your expertis...
21yEmbracing user-friendly AP systems can turn the tide, streamlining workflows, enhancing compliance, and opening doors to early payment discounts. Read...
View articleOrganisations can enhance their financial operations' efficiency, accuracy, and responsiveness by adopting platforms that offer them self-service cust...
View articleIn a world of instant results and automated workloads, the potential for AP to drive insights and transform results is enormous. But, if you’re still ...
View resourceDiscover how AP dashboards can transform your business by enhancing efficiency and accuracy in tracking key metrics, as revealed by the latest insight...
View articleThe Bank of England has appointed Ernst and Young LLP (EY) as its external auditor from the financial year ending 28 February 2025. Read More...
View articleThis follows an investigation into undisclosed personal loans and issues with an acquisition. Despite challenges, the company aims to achieve £1bn in ...
View articlePwC's decision to delay promotions in its graduate scheme, affecting around 100 graduates, is a response to reduced client demand and the aftermath of...
View articleTraditionally, audit schedules have been prepared manually, consuming significant time and resources. However, with the advancements in Artificial Int...
View articleThe FRC is promoting initiatives to foster a more competitive market, following recent high-profile accounting scandals. Read More...
View articleOn January 27, it was reported EY had quit as auditor to Asda amid one of its senior partners starting a romantic relationship with billionaire chief ...
View articleDespite the increased interest in AI and ML, only 12% of respondents indicate their organisations have adopted AI and ML within their audit functions....
View articleAs the government's independent investigation progresses, it is hoped that a clearer picture will emerge, leading to meaningful reforms within the aud...
View article