A DECADE of ‘almost continuous change’ in financial reporting may be reaching its end game, according to a senior IASB lieutenant.
Ian Mackintosh, IASB vice-chairman, said that “after a decade of almost continuous change in financial reporting, we could have some relative calm”.
Delivering a speech at the EY-sponsored financial reporting outlook conference, held in London on November 10, he said: “For companies here in Europe, the upheaval of making the transition to IFRS is well behind you, and the major convergence projects of the last decade are now largely complete.
“Today, IFRS means that the outlook for financial reporting is the same for most countries in the world. Accounting is on the cusp of becoming the world’s first global profession, largely thanks to IFRS. This is remarkable progress in little more than a decade. We should all be proud.”
Mackintosh shared his views on the inevitability of global accounting standards and how the demand-side of economic globalisation and international business has been satisfied by the supply-side of IFRS as the “globally consistent language of financial reporting”.
He also praised the success of the IFRS model and how moving from convergence in national standards to adoption of the same global standard has revolutionised the financial reporting landscape across the world.
Mackintosh predicted that the successful ‘maturing of IFRS’ over the last decade, might now be followed by a period of relative calm.
“Perhaps we are moving from the build-out phase of global standards, to a period where the focus is on the maintenance of those standards and working with others to encourage their consistent implementation.
“To a large extent the fulfilment of this vision is in your hands. Next year we will have an agenda consultation and you, our constituents, will tell us how you would like to see the next few years play out.”
The FRC is inviting comments from stakeholders on its proposed approach to updating FRS 102 to reflect changes in IFRS
Board members of accounting standard setter the IASB have come under fire for the size of their remuneration packages amid scrutiny of how the organisation is governed
The IASB has issued amendments to its existing insurance contracts accounting standard, IFRS 4
The UK’s largest listed companies should disregard the accounting advice of reporting watchdog the FRC, a group of investors have urged chairmen of FTSE 350 businesses