ICAEW slams convergence timing

Link: IAS special report

In response to the IASB’s exposure draft on the accounting treatment of non-current assets and discontinued operations, the first to arise from its joint short-term convergence project with the US Financial Accounting Standards Board, the Institute warned that there should be a greater focus on the adoption of International Financial Reporting Standards in 2005.

Andy Simmonds, chairman of the Institute working party that prepared the comment letter to the IASB, said: ‘While we strongly support convergence between IFRS and existing national GAAPs, we believe that UK and other EU listed companies – already facing major challenges migrating to IFRS – should not be obliged to implement these further changes in 2005 solely in the interests of advancing the convergence process. A smooth transition to IFRS is of paramount importance and much remains to be done.’

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