Philips CFO warns on IAS dangers
The chief financial officer of electronics giant Philips has warned that Europe's capital markets are not ready for the introduction of international financial reporting standards next year.
In an interview conducted by KPMG, Jan Hommen said that the standards to be used next year are not ready and their rushed introduction ‘may confuse the markets’.
‘The French have objected to the financial instruments standard,’ said Hommen. ‘There is a very ambitious timetable. The European Commission has become involved. The Americans are saying “follow us or we will not agree”. All the standards are not ready. When people realise the effect on, for example, pensions, they will also object.’
This catalogue of difficulties will, according to Hommen, lead to ‘confusion in the financial markets as to whether people are reporting under local GAAP, international accounting standards, or US GAAP.’
He also warned that analysts ‘understand little about international accounting standards’ and are ‘not ready to see the changes which are coming’.