Restatements warning over IAS39

Restatements warning over IAS39

Difficulties with new rules on hedge accounting are creating a high danger of earnings restatements, according to experts.

Link: Why is the City in a panic over IFRS?

Joseph St Denis, senior director in the credit policy group at Fitch Ratings, said that uneven application of derivative accounting rules on both sides of the Atlantic meant damaging restatements were increasingly likely.

The concerns come over the American rule SFAS133 and Europe’s IAS39, which aim to cut earnings volatility.

Denis told The Financial Times that inconsistency in the application of the American system, which has already led to restatements from companies such as El Paso and Shurgard Storage Centers, boded ill for the implementation of its European counterpart.

The fears were raised after a survey of 57 companies highlighted a lack of agreement over how the rules should be applied.

Share

Subscribe to get your daily business insights

Resources & Whitepapers

Why Professional Services Firms Should Ditch Folders and Embrace Metadata
Professional Services

Why Professional Services Firms Should Ditch Folders and Embrace Metadata

3y

Why Professional Services Firms Should Ditch Folde...

In the past decade, the professional services industry has transformed significantly. Digital disruptions, increased competition, and changing market ...

View resource
2 Vital keys to Remaining Competitive for Professional Services Firms

2 Vital keys to Remaining Competitive for Professional Services Firms

3y

2 Vital keys to Remaining Competitive for Professi...

In recent months, professional services firms are facing more pressure than ever to deliver value to clients. Often, clients look at the firms own inf...

View resource
Turn Accounts Payable into a value-engine
Accounting Firms

Turn Accounts Payable into a value-engine

3y

Turn Accounts Payable into a value-engine

In a world of instant results and automated workloads, the potential for AP to drive insights and transform results is enormous. But, if you’re still ...

View resource
Digital Links: A guide to MTD in 2021
Making Tax Digital

Digital Links: A guide to MTD in 2021

3y

Digital Links: A guide to MTD in 2021

The first phase of Making Tax Digital (MTD) saw the requirement for the digital submission of the VAT Return using compliant software. That’s now behi...

View resource