BusinessCompany NewsPwC issues challenge

PwC issues challenge

UK and global standard-setters were this week facing the first open challenge to their authority with the launch of a standards' rating tool by PricewaterhouseCoopers, writes Michelle Perry.

The Big Five firm on Monday launched a mechanism to score accounting standards against a set criteria written up by the firm’s experts. The move marks the first signs of a foray by Big Five firms into the realms of standard setting.

One standard-setter said the results of PwC’s analysis on the rule for deferred tax were surprising and suggested PwC had stepped outside its expertise. Out of a maximum of 10, PwC rated FRS 19 for deferred tax with a score of 6.3 compared to the predecessor standard’s score of 6.9.

Peter Holgate, PwC senior technical partner said: ‘A change is not always an improvement. Scores we have attributed to these standards tell us that in just half the cases looked at, new standards fared worse than their predecessors.’

PwC’s move was dismissed by Accounting Standards Board chairman Mary Keegan. ‘It makes standard-setters look like we’re ice-dancing holding up score cards,’ she said.

Related Articles

M&S business rate liabilities based on £570m rateable value

Company News M&S business rate liabilities based on £570m rateable value

2w Emma Smith, Managing Editor
BDO replaces Deloitte as Mitie auditor

Audit BDO replaces Deloitte as Mitie auditor

4m Emma Smith, Managing Editor
CVR Global appoints partner in London office

Company News CVR Global appoints partner in London office

8m Alia Shoaib, Reporter
FTSE100 failing to provide adequate ethics information

Company News FTSE100 failing to provide adequate ethics information

8m Alia Shoaib, Reporter
Moore Stephens recruits new private client partner

Accounting Firms Moore Stephens recruits new private client partner

11m Emma Smith, Managing Editor
Magma Group announces merger, partner promotions

Accounting Firms Magma Group announces merger, partner promotions

11m Emma Smith, Managing Editor
BDO on ‘recruitment spree’ with multiple partner appointments

Accounting Firms BDO on ‘recruitment spree’ with multiple partner appointments

11m Emma Smith, Managing Editor
Brand strength leads to fee income growth for RSM

Accounting Firms Brand strength leads to fee income growth for RSM

11m Emma Smith, Managing Editor