PracticeAuditIASB to tackle ‘aggressive accounting’

IASB to tackle 'aggressive accounting'

The International Accounting Standards Board this week announced its intention to tackle the quagmire that is revenue recognition, otherwise known as 'aggressive accounting' - when companies artificially inflate their profits through improper accounting practices.

The news will bring some respite to the investor community where confidence has plummetted following the discovery of widescale fraud at the US telecoms giant WorldCom and from fallout due to the Enron scandal.

The decision comes as part of the IASB’s new work programme which will also look at business consolidations, including special purpose entities, which contributed to the fall of the US energy company Enron.

Other topics include accounting for pensions, income tax, segment reporting and revaluations.

The UK’s Accounting Standards Board and its Auditing Practices Board last year kick-started the debate on revenue recognition after it warned that the growing trend used by many US companies could begin to permeate the UK market.

Related Articles

Is predictive analytics the end of the annual audit?

Audit Is predictive analytics the end of the annual audit?

14h Martin Herron, MHA MacIntyre Hudson
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

6d Emma Smith, Managing Editor
PCAOB sanctions former Deloitte Turkey CEOs over altered documents

Audit PCAOB sanctions former Deloitte Turkey CEOs over altered documents

2w 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