Global body calls for war on complexity

Global body calls for war on complexity

Alliance declares complexity in financial reporting cannot be tolerated

The world’s largest accounting body has the current complexity in financial
reporting “cannot be allowed to continue”.

The Global Accounting Alliance, representing institutes and professional
bodies from the leading economies, said the real question was how to achieve
simplification.

“No single compelling courseof action was identified which would speed the
demise of complexity.”

It added: “There was unavoidable complexity, which related to the growing
complexity of businesss and the accounting which underpinned it. And there was
avoidable complexity, the simple accretion of unnecessary detail. Accepting one
while ridding reports of the other has to the aim.”

The GAA’s report comes after a series of summits in London Beijing and New
York.

The GAA published support for a single set of international standards and
that they should be principles based. It also said the independence of the IASB
– the body overseeing international standards – should be preserved.

These goals would be pursued, the GAA said, by lobbying “all the players in
the financial reporting debate”.

Read more:

Global
Accounting Alliance report

Share

Subscribe to get your daily business insights

Resources & Whitepapers

Why Professional Services Firms Should Ditch Folders and Embrace Metadata
Professional Services

Why Professional Services Firms Should Ditch Folders and Embrace Metadata

3y

Why Professional Services Firms Should Ditch Folde...

In the past decade, the professional services industry has transformed significantly. Digital disruptions, increased competition, and changing market ...

View resource
2 Vital keys to Remaining Competitive for Professional Services Firms

2 Vital keys to Remaining Competitive for Professional Services Firms

3y

2 Vital keys to Remaining Competitive for Professi...

In recent months, professional services firms are facing more pressure than ever to deliver value to clients. Often, clients look at the firms own inf...

View resource
Turn Accounts Payable into a value-engine
Accounting Firms

Turn Accounts Payable into a value-engine

3y

Turn Accounts Payable into a value-engine

In a world of instant results and automated workloads, the potential for AP to drive insights and transform results is enormous. But, if you’re still ...

View resource
Digital Links: A guide to MTD in 2021
Making Tax Digital

Digital Links: A guide to MTD in 2021

3y

Digital Links: A guide to MTD in 2021

The first phase of Making Tax Digital (MTD) saw the requirement for the digital submission of the VAT Return using compliant software. That’s now behi...

View resource