ICAS seeks IAS39 endorsement
ICAS has weighed into the political argument over financial instruments standard IAS39 after encouraging the European Commission to endorse the controversial standard.
Link: IAS special report
In a letter to internal market commissioner Frits Bolkestein, Ian Robertson, president of the Scottish Institute, said: ‘ICAS has long been a proponent of full transparency in financial reporting.
‘We have been extremely disappointed to note that in spite of prolonged discussions on the suitability of IAS32 and IAS39 on financial instruments, listed companies are still uncertain as to exactly which standards they will need to comply with from 1 January 2005.
‘At a time when the profession and the legislators are both working towards a common goal of restoring confidence in financial reporting and auditing, we believe that full transparency in the preparation of accounts, and in the reporting which follows, is essential, and that these standards are vital in achieving this.
‘We would strongly encourage the Commission to give a strong signal of support for the efforts which are being made towards restoring confidence in financial reporting by adopting both IAS32 and 39 without delay.
‘Failure by the European Commission to endorse these standards will cast doubt on the credibility of the European financial reporting regime at a time when European business is seeking to re-establish corporate credibility and investor confidence.’