RegulationAccounting StandardsTweedie predicts global take-up of liability moves

Tweedie predicts global take-up of liability moves

IASB chairman predicts a global take-up of liability limitations if the US adopts IFRS

Sir David Tweedie has predicted that the adoption of IFRS by the United
States could see liability limitations also go global.

The IASB chairman
believed it would be all-or-nothing as to whether companies accepted the
controversial measures, when companies on both sides of the Atlantic were
operating under the same set of financial standards. ‘You will find that we will
see a lot of things like liability and commercial law, all come into line after
global alignment [of reporting standards].

‘There is too much danger for the firms. Nobody wants another Andersen,’ Sir
David told Accountancy Age.

The issue of liability limitation is at a delicate stage, with the US
tentative about joining European efforts to reduce firms’ risk, and potentially
scuppering plans for multi-nationals listed on US markets.

Some companies have also baulked at the idea of limiting auditors’ liability.
While the ability for an auditor to limit its liability exists in law, it is not
thought that any companies have yet signed up to the plans.

Sir David was speaking at the ICAS conference which also saw the SEC’s chief
accountant Conrad Hewitt flesh out proposals for IFRS adoption. In unveiling the
plans, the US markets watchdog has taken a major step towards the conversion,
which is slated to come into force for all US companies by 2014.

Related Articles

Demystifying GDPR for accountants

Accounting Standards Demystifying GDPR for accountants

1w Ellen Temperton, Lewis Silkin
EY fined £1.8m over Tech Data audit

Accounting Standards EY fined £1.8m over Tech Data audit

2m Emma Smith, Managing Editor
The great professional services shake-up

Accounting Standards The great professional services shake-up

3m Fergus Payne, Lewis Silkin
What do clients actually want from an accountant?

Accounting Standards What do clients actually want from an accountant?

4m Emma Smith, Managing Editor
Accountants shouldn’t neglect hybrid mismatch anti-avoidance rules

Accounting Standards Accountants shouldn’t neglect hybrid mismatch anti-avoidance rules

4m Alison Conley
Membership of the accountancy profession on the rise

Accounting Standards Membership of the accountancy profession on the rise

5m Alia Shoaib, Reporter
The real price of mates' rates in the provision of professional services

Accounting Standards The real price of mates' rates in the provision of professional services

5m DAC Beachcroft
IASB overhauls insurance accounting with issuance of IFRS 17

Accounting Standards IASB overhauls insurance accounting with issuance of IFRS 17

7m Alia Shoaib, Reporter