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

EY to audit Standard Chartered bank

Audit EY to audit Standard Chartered bank

2w Alia Shoaib, Reporter
KPMG replaces PwC as Croda auditor

Accounting Firms KPMG replaces PwC as Croda auditor

1m Emma Smith, Managing Editor
EY fined £1.8m over Tech Data audit

Accounting Standards EY fined £1.8m over Tech Data audit

1m Emma Smith, Managing Editor
BDO replaces Deloitte as Mitie auditor

Audit BDO replaces Deloitte as Mitie auditor

2m Emma Smith, Managing Editor
FRC closes KPMG HBOS audit investigation, Treasury Committee expects ‘full explanation’

Accounting Firms FRC closes KPMG HBOS audit investigation, Treasury Committee expects ‘full explanation’

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

1m Emma Smith, Managing Editor
FRC closes investigation into PwC over Barclays compliance

Accounting Firms FRC closes investigation into PwC over Barclays compliance

2m Alia Shoaib, Reporter
KPMG rocked by South African corruption scandal

Audit KPMG rocked by South African corruption scandal

2m Alia Shoaib, Reporter