Investors blast convergence of US and international standards
Investors warn they may withdraw suport for convergence over fears it could weaken corporate financial reporting
A high-profile group of investors have warned they would withdraw their
support of the convergence of US and interntional accounting standards, amidst
threats that the convergence
project could weaken corporate financial reporting.
Mark Anson, chief execuitve of Hermes Pensions Management and head of the
International
Corporate Governance Network, sent a letter to the International Accounting
Standards Board, raising the group’s concerns, the Financial Times
reported.
This stems from a joint discussion paper recently published by the
International Accounting
Standards Board, addressing the objectives of the accounting changes.
The international standard-setter has never before been confronted by such a
powerful group of investors, and cannot help but pay attention to signs of
wavering support for one of its most significant convergence projects.
Further reading:
Time to decide: Principles or rules?
PwC partners against global convergence