Sir Andrew Large, deputy governor of the Bank of England, this morning (Monday) told a central banking conference in London that the situation surrounding IAS39 is ‘unsatisfactory’.
But Tom Seidenstein of the IASB said: ‘The IASB thinks the existing standard provides a workable solution in the context. In the long-term we are doing exactly what Sir Andrew is proposing. But in the short-term a total revision of the rule wasn’t feasible.’
IAS39 was issued in 1998, and companies around the world have been applying the standard in their corporate accounts since then. But due to some ‘inconsistencies’ in the rule, standard-setters decided to revise parts of the rule ahead of European listed companies adopting mandatory application of international financial reporting standards on 1 January 2004.
The IASB has just established a working group that will be tasked with redrafting IAS39. ‘The question is what the timeframe is and what they can do. There’s no clear direction,’ said Seidenstein.
This morning Large said: ‘In my view, the only way forward is first to take a few steps back, before work starts on re-engineering the standard.’
The Financial Reporting Council has issued guidance regarding the annual reporting of 1,200 large and smaller listed companies. The letter highlighted the key issues and improvements that can be made in the 2016 reporting season
Baldwins Accountancy Group has continued investment in the north-east and appointed David Fish as a director in its corporate finance team
UK M&A activity bounced back strongly in July and August, according to analysis by the deals practice at PwC.
Smith & Williamson has added Jim Clark and Philip Marsden, of Marsden Clark Corporate Finance Limited, to its corporate finance team.