RegulationAccounting StandardsBT’s Rake calls for convergence slowdown

BT’s Rake calls for convergence slowdown

Former Big Four chairman urges standard setters to fix rule book, not rush towards a single accounting system

Sir Michael Rake, BT’s chairman and former head of KPMG International, has
called of accounting standard setters to step back from the convergence process
and concentrate on fixing the current system instead.

At the same time Rake warned against a rush towards controversial ‘fair
value’ accounting standards.

Speaking in today’s Financial Times, Rake said:
‘Financial statements have become meaninglessly complex to many people. We need
to get what we’ve got right before rushing ahead. We have the opportunity right
now to take a step back.’

Rake, who took over as chairman of BT earlier this month, criticised the
widespread use of fair value accounting. He said: ‘We’ve got to be really
careful with the framework. That’s not to say we shouldn’t use fair value… but
marking everything to fair value, I’m not sure that is comprehensible to
investors.’

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