IASC change runs into trouble
A decision to extend the International Accounting Standards Committee’s draft financial instruments standard to all companies, rather than just those seeking cross-border listings, has angered Accounting Standards Board chairman Sir David Tweedie.
The standard, E62, is likely to be approved by the IASC next month as an ‘interim’ measure covering financial instruments. The ASB is part of the G4+1 group writing a longer-term draft, which is likely to be adopted as the UK derivatives standard.
Christopher Nobbs, PricewaterhouseCoopers professor of accountancy at Reading University, voted with Sir David against the broadening amendment at the IASC board meeting in Zurich this month.
‘The standard is designed to be temporary and the IASC should make that clear by restricting its scope to cross-border listed companies. We don’t want lots of companies to change their view and then have to change again,’ he said.
But Ernst & Young director of international accounting Allister Wilson, who attended the IASC meeting as a technical observer, said: ‘The G4+1 are opposed in principle to E62 because people will like it too much. I think there will be a standard approved in Frankfurt next month.’