ICAS warns against US-style rule tweaks
Scottish institute urges IASB not to follow FASB's lead and make further amendments to accounting rules
ICAS has warned European standard setters not to follow the lead of
rulemakers in the US because it could undermine confidence in financial
reporting.
The Financial Accounting Standards Board recently amended rules to allow
companies listed on US exchanges greater scope to value certain financial assets
based on their own models. The IASB has asked for views on a similar move and
ICAS urged the standard setter not to implement it.
Chief economic adviser at ICAS, Hugh Shields, said:
‘The IASB should resist following the example of the United States. The US
changes are an attempt to respond to institutional concern about current market
conditions but risk undermining investor confidence at a critical time for
banks.
‘These are tough times but changing the rules to make things look better
should fool nobody.’