Tweedie forecasts 'blood' over new standards
The storm over IAS39 was a 'blip', but future battles over global harmonisation will be 'bloody', Sir David Tweedie has said.
Link: Why is the City in a panic over IFRS?
The chairman of the international accounting standards board told the Financial Times: ‘Now we’re coming to the big ones, and all of them will have controversy – there will be blood all over the streets.’
He highlighted as a likely flashpoint a new standard that would put leased items on the balance sheet, which he said would prompt companies with large assets to ‘erupt’.
Sir David hazarded a prediction that a temporary agreement on fair value accounting on liabilities under IAS39 might be in place by the end of March next year.
However, he was less forthcoming on the timetable for a resolution of the disagreement over hedge accounting for derivatives.