Doubts loom over accounting for partners' capital
Big Four await guidance on effect of IFRS on partners' capital
The Big Four firms are awaiting the outcome of a working party that would
determine how they will account for their own partners’ capital under IFRS.
It emerged this week that there are concerns that assets could be reduced and
liabilities increased as a result of changes under IFRS that would force firms
to account for the capital as long-term debt.
The LLP working party is preparing an exposure draft of guidance to be
released through the Accounting Standards Board, which is expected in the
KPMG, expected to switch to IFRS for its 2005/2006 accounts, said it would
wait for the conclusions of the working party. Until then, a spokesman said, it
would be difficult to comment on the effects of IFRS in the firm.