Accountants 'lose out' over M&A regulation

News Article - 10 January 2008
Category: Regulatory

The International Accounting Standards Board (IASB) has announced that companies must reveal the fees paid to advisers on mergers and acquisitions (M&As).

Reported in Accountancy Age magazine, a number of firms have voiced their concern over the move, claiming it will seriously reduce accountancy profits.

Ken Lever, chairman of The Hundred Group of FD's financial reporting committee, remarked: "The new accounting treatment does not really reflect the way in which an investment will be appraised."

According to the IASB, the adviser fee's inclusion in profit and loss reports will control costs, increase transparency and high standards of business reporting.

"The board did not accept that fees paid in relation to an acquisition are an asset or part of an asset," commented Alan Teixeira, senior project manager at the IASB.

In related news, the IASB has developed a set of guidelines to be applied to financial statements issued under both International Financial Reporting Standards and Generally Accepted Accounting Principles.

It claims the standards allow more flexibility in M&A accounting.

Article keywords:

---

More industry news

• Think tank warns UK may have already slipped back into recession
• Growing demand for HR staff in technology and international sectors
• Boosting business growth a ‘priority’ to avoid Eurozone slowdown
• HMRC launches alternative disputes pilot scheme this week
• December employment statistics disregard gloomy recruitment predictions
• Eurozone manufacturing PMI shows modest improvement
• UK scores highly for economic governance by ratings agency
• Government launches two-year project focusing on manufacturing sector
• Burden of regulation on UK businesses ‘too high’

Back to news home page »