RegulationAccounting StandardsBudget 09: profession backs single standard for banks

Budget 09: profession backs single standard for banks

Government support for a single global reporting language described as 'well overdue'

budget box

Accountancy bodies and standard setters have backed the government’s wish to
have the banking industry governed by a single set of accounting rules as well
overdue, after the chancellor appeared to back the
IASB’s convergence
efforts.

In his Budget speech, the chancellor said the Treasury was close to
publishing a financial regulation paper which would outline reforms including a
universal accounting standard, to help lift the lid on what risks banks were
taking.

‘It’s good to see the government expressing strong support for global
standards,’ said an insider at a leading standard-setter.

Banks headquartered overseas with UK divisions may report under GAAP, making
it hard to compare them with London-listed institutions publishing
IFRS-compliant accounts.

Chas Roy-Chowdury, head of taxation at
ACCA said: ‘The
chancellor said government support for a single global reporting language was
well overdue.

Michael Izza chief executive of the
ICAEW welcomed ‘the
government’s commitment to a robust set of single accounting standards for the
global economy’.

The G20 summit in London earlier this month committed itself to a single set
of standards though there has been intense debate in the background between
heads of state.

One of the most controversial aspects of international standards is the
notorious standard IAS39 on financial instruments which is hated in some parts
of the continent and has caused some, the French in particular, to lobby for
wholesale change to the standard setting process.

More Budget news:

Budget
09: business dismisses ‘trivial’ Budget

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