PracticeAuditICAS rejects phased introduction of IFRS

ICAS rejects phased introduction of IFRS

Rather than go for a phased-in introduction of international financial reporting standards in the UK, the Scottish Institute has called for a 'big bang approach' in two to three year's time.

IFRS become mandatory for listed EU companies in 2005, but the Accounting Standards Board plans to phase them in to replace existing UK accounting standards.

In a statement the Institute of Chartered Accountants of Scotland said it rejected this idea, favouring ‘a big bang transition to IFRS possibly in two to three years time to give companies time to prepare for their introduction’.

This was in response to the ASB’s invitation to comment on its planned strategy for introducing IFRS – UK Accounting Standards: A Strategy for Convergence with IFRS – which proposes a phased implementation of IFRS.

Hugh Shields, convenor of the ICAS Accounting Standards Committee said: ‘We do not agree with the ASB’s strategy if it will create differences between IFRSs and the IFRS-based standards to be used in the UK. We believe that the faster the UK moves to using a single set of IFRS, the better for all concerned.

‘We believe that rather than few differences, there should be no differences at all other than those that are required for cross-referencing purposes. We also believe that this issue could be avoided completely if the UK was not following a phased approach to the transition.’

Related Articles

Auditors ‘in the dock’ over Carillion as report calls for Big Four break-up

Audit Auditors ‘in the dock’ over Carillion as report calls for Big Four break-up

5d Emma Smith, Managing Editor
PCAOB sanctions former Deloitte Turkey CEOs over altered documents

Audit PCAOB sanctions former Deloitte Turkey CEOs over altered documents

1w Alia Shoaib, Reporter
KPMG South Africa to review past audit work amid fresh scandal

Audit KPMG South Africa to review past audit work amid fresh scandal

1m Alia Shoaib, Reporter
FRC introduces £10m sanctions for Big Four firms

Audit FRC introduces £10m sanctions for Big Four firms

1m Alia Shoaib, Reporter
Ukraine’s PrivatBank files $3bn claim against PwC

Audit Ukraine’s PrivatBank files $3bn claim against PwC

2m Alia Shoaib, Reporter
Grant Thornton to exit FTSE 350 audit market, citing Big Four dominance

Audit Grant Thornton to exit FTSE 350 audit market, citing Big Four dominance

2m Alia Shoaib, Reporter
Big Four dominate FTSE 250 audit market in Q1 rankings

Audit Big Four dominate FTSE 250 audit market in Q1 rankings

3m Alia Shoaib, Reporter
Deloitte to pay $149.5m over Taylor, Bean & Whitaker audit failure

Audit Deloitte to pay $149.5m over Taylor, Bean & Whitaker audit failure

3m Alia Shoaib, Reporter