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European standard setters broadly supportive of IFRS, but insist on quality and a measured approach
European standard setters gave broad nods to international financial reporting standards, but called for a measured approach with no headlong rush for perfection or convergence with US GAAP.
Talking at international financial reporting conference Meet the Experts, they called on international standard setters to listen to individual jurisdictions' needs.
Global accounting standards have been a success, improving quality and comparability, according to Stig Enevoldsen, a leading figure in the European Financial Reporting Advisory Group.
Concerns surrounding international financial reporting statements include ongoing small changes, interpretations and materiality, but Enevoldsen said a sensible, thoughtful interpretation and implementation of the standards should combat many of these issues.
His "mainly positive sentiment" was echoed by Liesel Knorr, president of the German Accounting Standards Board.
However, David Loweth, technical director of the UK ASB, offered a more measured evaluation of the standards, pointing to the "many, many years" it takes to complete and endorse standards in the European Union.
Jérôme Haas, chairman of French accounting standard setter the ANC, applauded the US for "considering before adopting IFRS", saying this is something the EU "did not take long enough to do".
He questioned whether the IASB "produces standards that sufficiently respond to needs, rather than anything else," and asked whether Europe is sufficiently active in contributing to their development.
Knorr insisted convergence with US GAAP must be "the second priority of IFRS", arguing: "Quality is absolutely the first priority."
All the standard setters argued for "a period of calm" to get to grips with current global standards and recent years' revision, saying this would help preparers and users gain maximum benefit from comparability.
Standard setters say “no thanks” to IFRS for SMEs
European standard setters seem unconvinced by international financial reporting standards for SMEs.
Liesel Knorr, president of the German Accounting Standards Board, said there is no possibility of so-called FRSME in Germany, pointing to a recent overhaul of the country's standards and zero political desire for a second upheaval.
France's Jerome Haas, chairman of accounting standard setter the ANC, suggested FRSME is just a "jargon", questioning whether it is "a language that nobody speaks".
David Loweth, technical director of the UK ASB, was less negative, but highlighted the many and varied concerns of SMEs consulted on adopting a light-weight version of the global accounting standards.
Global standard setters the IASB have themselves implied they are not hugely concerned about uptake of FRSME, saying it was developed in response to calls from countries with under-developed national accounting standards and is not the most important part of their work.
Source: Accountancy Age
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