Views on direction for global accounting standards in 2012-2015
London, 31 January 2012 - Following the conclusion of the International Accounting Standards Board’s (IASB) consultation in November 2011 for its future direction and agenda over the next three years, and to coincide with the launch of the International GAAP® 2012, Ernst & Young provides some views on the role the IASB could play in setting relevant and useful standards for global financial reporting.
The IASB agenda should focus on three key strategic areas:
- Take the opportunity to step back and focus on the long-term goals of IFRS. The IASB has the unique ability at this point in time to take a step back and re-assess the strategic direction of IFRS as a valuable tool for financial reporting for both users and preparers. The most important project would be a long-term analysis of the future of performance reporting.
- A period of calm. Preparers and users need time to implement and digest the raft of new standards that have been or will be completed in 2012. These include new standards on financial instruments, consolidation, joint arrangements, fair value measurement, revenue and leases.
- Focus on consistency of application. As noted by the IASB in its consultation, there is an opportunity to focus on Post-Implementation Reviews and ensuring standards are consistently applied and interpreted. However, there are further efforts outside of post-implementation reviews needed to ensure the continued value, usefulness and consistency of IFRS into the future. These include a more direct role of the Monitoring Board in ensuring consistent regulation of accounting standards across jurisdictions.
Ruth Picker, Global IFRS Leader, comments, “The IASB stands at a pivotal point in time. With much of its existing work program near completion, there is a momentous opportunity to reshape the value of IFRS for the future. We encourage the Board to be bold”.
International GAAP® 2012
Ernst & Young has today launched an update to its International GAAP® which provides useful information and guidance on the IFRS environment and what changes can be expected. It is recommended for anyone involved in preparing, interpreting or auditing company accounts; regulators; academic researchers; and for students of accountancy.
Ruth Picker comments, “Ernst & Young encourages organizations to take steps straight away to begin assessing the potential impacts of the new and proposed standards and prepare for the changes. This latest guide should be a useful tool for them in this process as well as for the application of existing standards.”
For further information about Ernst & Young’s Global International Financial Reporting Group please refer to www.ey.com/ifrs.
About the IASB consultation
As the IASB moves closer to finalising the remaining projects in its current work plan, it is looking forward to the next three years of standard-setting. On 26 July 2011, the Board issued a request for views (The Report) on the strategic direction and overall balance of its future agenda. This will be the first of an ongoing three-yearly public consultation process. The comment period for the Report ended on 30 November 2011.
About International GAAP® 2012
The 2012 International GAAP® has been written by financial reporting professionals from the International Financial Reporting Group of Ernst & Young and provides insights into how complex practical issues should be resolved in the real world of global financial reporting. Updated annually to reflect the new IASB standards and interpretations, and to deliver the latest guidance on the application of IFRS, International GAAP® 2012 has been fully revised in order to:
- Deal with all new and amended authoritative pronouncements.
- Explain the many initiatives that are currently being pursued by the IASB and IFRS Interpretations Committee and that will lead to changes in accounting requirements. Provide insight and guidance on the interpretation and practical application of IFRS from a truly global perspective, based on the experience of the book’s authors in dealing with recent day-to-day practical issues.
- Present the sections relating to Financial Instruments and Insurance Contracts in a separate volume for ease of access.
A retail edition of International GAAP® is available (£135/€162/US$220) direct from Ernst & Young either online (www.wileyigaap.com) or through customer service (+44 (0)1243 843294). For further information on how our clients may access International GAAP® online,
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