Company directors wrong over standards concerns says ASB chief

News Article - 23 May 2012
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Concerns held by directors of the UK's top companies over new accounting standards are misplaced, according to the chairman of the Accounting Standards Board (ASB).

Writing in the Financial Times, Ian Mackintosh said that the concerns held over international financial reporting standards (IFRS) were driven by nostalgia for the previous GAAP standards.

Chairmen of FTSE 100 companies were said to have raised "serious criticisms" of IFRS when they recently met the Financial Reporting Council.

While most saw early problems with IFRS as fundamental, Mr Mackintosh believed they were less significant.

"I believe the causes are more likely to be teething troubles or a misplaced nostalgia for an accounting regime that would, in fact, have moved in much the same direction as IFRS," he said.

"However, I do agree there should be more discussion of fair value accounting, which relies on market values or a calculation of present value."

Some finance directors have suggested IFRS will make company accounts less transparent and more opaque, meaning the potential for abuse is increased by its introduction.

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