IFRS updates will continue to challenge reporters
London, 5 February 2014
Following last year’s IASB announcement that convergence between IFRS and US GAAP was no longer to be a primary objective, the outlook for convergence between the two standards is mixed, says EY. However, the IASB and FASB both have expressed the position that unnecessary divergence should be avoided and global alignment should go ahead where it is in the best interests of capital markets. We still support the objective of a single set of high-quality global standards for financial reporting.
EY’s International GAAP® 2014 is launched
IFRS has received criticism
IFRS has received criticism from within the EU and there have been suggestions that IFRS standards should be adopted on a more selective basis by European countries but in our opinion this would be a regrettable and retrograde step damaging the credibility of IFRS and the quest for a global accounting framework. The IASB appears to acknowledge some of these criticisms levelled at IFRS in the wake of the financial crisis, in its discussion paper proposing potentially significant changes to the Conceptual Framework for Financial Reporting and we are encouraged that the EU appears to be focusing on how it might influence the IASB in a more effective and unified way.
Growing adoption of IFRS puts focus on consistent application
More and more countries are adopting IFRS, so the challenge of consistent application of IFRS, essential for its credibility, increases. We believe that publications like International GAAP, play an important part in this, using the insight and in-depth knowledge of our practices across many countries and sector to explain IFRS application in many varied situations.
International GAAP® 2014 published
EY’s International Financial Reporting Group has published its annual comprehensive update, International GAAP® 2014.
The 2014 edition examines practical issues arising from the adoption of Consolidated Financial Statements (IFRS 10), Joint Arrangements (IFRS 11), Fair Value Measurement (IFRS 13) and Employee Benefits (IAS 19 Revised) and includes a new chapter introducing the approach to hedge accounting in the revised standard on Financial Instruments (IFRS 9).
Leo van der Tas, EY’s Global IFRS leader, comments: “Clients have had many changes to implement in 2013 and are faced with many more. 2014 will be another busy year in the further development of IFRS with the revenue recognition standard expected to be finalized; the completion of IFRS 9 Financial Instruments (classification and measurement and impairment phases); and ongoing discussions on leases and insurance contracts. EY welcomes efforts to improve the clarity of standards and to help preparers apply IFRS more consistently.”
Notes to Editors
About International GAAP® 2014
The book costs £135 (€155.30) and is available for purchase from Wiley Publishers on http://www.wileyigaap.com. The online version costs £195 (€234.00) and is also available from the address above. The enhanced edition, which includes the underlying source standards, costs £385 (€462.00).
EY is a global leader in assurance, tax, transaction and advisory services. The insights and quality services we deliver help build trust and confidence in the capital markets and in economies the world over. We develop outstanding leaders who team to deliver on our promises to all of our stakeholders. In so doing, we play a critical role in building a better working world for our people, for our clients and for our communities.
EY refers to the global organization, and may refer to one or more, of the member firms of Ernst & Young Global Limited, each of which is a separate legal entity. Ernst & Young Global Limited, a UK company limited by guarantee, does not provide services to clients. For more information about our organization, please visit ey.com.