On International Financial Reporting Standards
April 24, 2008 12:00 AM
By Sharon Bowles MEP in European Parliament
Originally published by Sharon Bowles MEP
By Sharon Bowles MEP in European Parliament
Originally published by Sharon Bowles MEP
International Financial Reporting Standards (IFRSs) are being adapted by more and more countries, so their value and importance is growing.
This brings with it a need to strengthen accountability and transparency of the IASB, which may not have been so obvious at its inception. I welcome moves in that direction, but I regret that some parts of this report present criticism in a negative way, rather than acknowledging changes that are under way and pointing the way forward. So several of my amendments aim to be more forward-looking, highlighting the advantages and benefits, alongside the need for further adaptation, both to the standards themselves and the IASB that oversees them. However, unnecessary politicisation of technical issues must be avoided. IFRSs are an important tool for advancing comparability across borders and reducing burdensome requirements for companies reporting under different regimes, but it would be useful if presentation of financial statements lent itself more easily to other comparison purposes. However, it may well be the case that tools such as XBRL tagging can develop that. I have to thank Ms van den Burg for organising an interesting presentation on that subject last week.
The SME proposals cause concern in several quarters. To me they look more like a tool for medium entities, perhaps on their way to full public reporting, so they may merit their own separate consideration in that light or on a voluntary basis. But - as you have said, Commissioner - as yet they are far too complex for the majority of ordinary SMEs.
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