CIMA warns G20 against 'knee-jerk' reaction
Accountancy institute urges the G20 to leave the IASB as an independent standard setter without political interference
The UK’s leading management accountancy institute has urged the G20 not to
take a ‘knee-jerk’ reaction to the financial crisis.
CIMA submitted a representation to the high-profile summit in which it said a
‘knee -jerk reaction could have unintended consequences,’ calling on world
leaders to maintain confidence in financial reporting by keeping faith with the
IASB.
CIMA said: ‘It is important that the IASB should remain an independent
standard setter, without political interference, whilst subject to appropriate
international oversight and accountability.
Last year, the IASB relaxed fair value rules largely to avoid a larger
carve-out threatened by EU mandarins.
‘In our view, fair value accounting with appropriate disclosure remains the
most appropriate measurement model for certain financial instruments, providing
timely, important and transparent information.The current financial crisis is
principally an economic issue not an accounting one,’ CIMA added.
Further reading:
Tweedie
nearly quit after fair value change