News Article - 27 November 2006
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The International Financial Reporting Interpretations Committee (IFRIC) has rejected up to 40 accounting treatments meaning hundreds of companies may have to resubmit their accounts.

After the implementation of international financial reporting standards, disagreements arose and a wave of restatements was prompted, Accountancy Age reports.

Richard Thorpe, head of accounting and auditing policy at the Financial Services Authority, told the publication: "We're concerned about market reaction to rejections on the basis that the standard is clear."

He added that companies which have made honest mistakes should not be punished by the markets and where the standard is clear the situation should be treated as a correction of error following misunderstanding.

Disagreements were also sparked on the topics of income tax charges and revenue recognition, reports the publication.

"There is a danger, if we say this is part of the learning process, that somebody may now engage in practice with intent and thereafter immediately issue a question with IFRIC to cover themselves," added Ken Wild, Deloitte partner and IFRIC committee member.

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