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ICAS demands speedy IFRS adoption. By Dan Martin

1st Aug 2006
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The UK should embrace a single set of international accounting standards for all but the smallest companies as soon as possible, an accountancy body has claimed.

The Institute of Chartered Accountants of Scotland (ICAS) made the demand in response to the Accounting Standards Board's (ASB) consultation on the future application of reporting requirements for UK firms.

"The sooner a single set of standards is applicable in the UK the better for users and preparers of financial information," said Hugh Shields, convenor of ICAS' accounting standards committee.

"The current position - where more than one set of GAAP is applicable - merely leads to confusion for users of financial statements. That said, ICAS will continue to lobby against the adoption of IFRSs with which we disagree and will encourage the ASB to do the same."

ICAS said it supports the development of a simplified international standard for small companies, but is opposed to what would be a third set of accounting standards applicable to medium-sized and unlisted companies.

These companies, it believes, should follow full IFRS, although reduced disclosure requirements for these companies, as well as for subsidiaries, may be appropriate.

The organisation called on the ASB to encourage the International Accounting Standards Board (IASB) to address this issue on an international level.

It added that it welcomed steps announced earlier this week by the IASB to assist the adoption of IFRS by delaying the application of any new standards or major amendments to standards until 1 January 2009. ICAS said this will provide a stable platform for the extension of IFRS to all UK companies.


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By jsriram36
07th Aug 2006 13:09

Adoption of IFRS
The adoption of IFRS without any delay will not only help in achieving the objectives of uniformity and consistency in the preparation of financial reports but also will avoid confusion in the minds of the users of Financial statements.Hope that IASB will do the needful in this regard at the International level.

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