PracticeAuditConflict looms over IAS39 auditor frustrations

Conflict looms over IAS39 auditor frustrations

Inconsistent interpretations of IAS39 by Big Four is frustrating treasurers of UK's largest companies

Corporate treasurers are on the brink of a major clash with Big Four auditors
over inconsistent interpretations of IAS39. They claim discrepancies between
firms have unfairly benefited companies simply because of their choice of
auditor.

Some of the UK’s largest companies have become increasingly frustrated with
the inconsistencies, especially as they have paid firms to implement the
standards smoothly.

Matthew Hurn, the treasurer at DSG International, the owner of PC World and
Currys, said the FTSE 100 group’s rivals were capitalising on favourable IAS39
interpretations from their auditors, which placed DSG at a disadvantage because
of its auditor’s conservative view.

‘There is a major discrepancy between audit firms that needs to be addressed.
It is frustrating when I see that many of our rivals are receiving a much better
IAS39 treatment,’ Hurn said at an Association of Corporate Treasurers
conference.

Responding to the criticisms as conference chair, Ken Wild, global IFRS
leader at Deloitte, said firms were doing their utmost to solve the problem. ‘We
are on a big learning curve and we are honestly trying our best to ensure
consistency across firms. It is going to take time,’ he said.

Related Articles

PwC replaces EY as Domino's auditor

Audit PwC replaces EY as Domino's auditor

2d Alia Shoaib, Reporter
The ‘uncomfortable truth’ behind FRC’s Big Four fines recommendations

Audit The ‘uncomfortable truth’ behind FRC’s Big Four fines recommendations

1w Carl Johnson, Stephensons
BDO holds off Big Four to retain top position as AIM auditor

Audit BDO holds off Big Four to retain top position as AIM auditor

1w Alia Shoaib, Reporter
FRC urged to fine Big Four firms penalties over £10m

Audit FRC urged to fine Big Four firms penalties over £10m

3w Alia Shoaib, Reporter
EY to audit Standard Chartered bank

Audit EY to audit Standard Chartered bank

1m Alia Shoaib, Reporter
KPMG replaces PwC as Croda auditor

Accounting Firms KPMG replaces PwC as Croda auditor

2m Emma Smith, Managing Editor
EY fined £1.8m over Tech Data audit

Accounting Standards EY fined £1.8m over Tech Data audit

2m Emma Smith, Managing Editor
Top 50+50: Firms post significant growth in new tax and audit rankings

Audit Top 50+50: Firms post significant growth in new tax and audit rankings

2m Emma Smith, Managing Editor