The EU says it’s time to review International Financial Reporting Standards

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The follwoing is very good news from the Telegraph:

A review of the controversial International Financial Reporting Standards (IFRS) has been sanctioned by Commissioner Michel Barnier to start early this year, in what amounts to a major breakthrough in a long-running campaign supported by The Daily Telegraph.

Investors from 10 leading groups – including Threadneedle Investments, the Co-Operative Asset Management, London Pension Fund Authority and Railpen – secretly wrote to Mr Barnier in October with a warning that the accounting rules were harming shareholders, and destabilising banks and the economy.

The group also wrote to Vince Cable, the Business Secretary, but, since previous warnings to the Coalition and the London-based International Accounting Standards Board had gone unanswered, they appealed directly for help from Brussels.

Replying in a letter to the investors, Olivier Guersent, the head of Mr Barnier’s cabinet, wrote that he “shared the concerns” of investors over IFRS. He said that warnings that the rules exacerbated the financial crisis were “legitimate questions”.

I am delighted by this.

Let’s hope they look at why the International Accounting Standards Board that is responsible for International Financial Reporting Standard refuses to embrace country-by-country reporting as a key item on the review agenda.