ASB defends E&Y criticism

The Accounting Standards Board this week hit back at Ernst & Young’s report criticising the board for publishing draft standards before completing its Statement of Principles.

ASB technical director Allan Cook explained the SOP had not appeared due to an overburdened staff. ‘We gave priority to responding to the International Accounting Standards Committee,’ he said.

Currently the ASB is drafting a response to the IASC’s controversial exposure draft on financial instruments and the same member of staff is responsible for drafting the SOP. ‘There is a limit to what you can push through, not only on the staff, but also the board,’ added Cook.

Nick Land, E&Y’s senior UK partner, attacked the ASB for pressing ahead with new financial reporting standards and drafts without an underlying theoretical framework.

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