Investors 'in tricky situation' over IFRS 8

News Article - 15 June 2007
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Investors urging the European Commission to reject international financial reporting standard (IFRS) 8 may be putting themselves in a tricky position, it has been claimed.

While it is "reassuring" to see the debate over standards rage on even among national presidents, Accountancy Age reports that most commentators seem to have been "tarnished" by efforts to clarify IFRS 8.

Investors warning that the standard placed too much power in the hands of management entered the debate late and now threaten to undermine the world's workings of IFRS and America's convergence to the system, the website suggests.

Additionally, the website questions why the European Commission should consider petitions for intervention when it has the International Accounting Standards Board to provide it with recommendations.

The standard was issued last November with the aim of making companies take a management approach to reporting the financial performance of its operating segments.

Last month, a group of MPs described the standard as "unacceptable" and set up a motion to oppose it.

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