{"id":10535,"date":"2011-06-16T10:14:17","date_gmt":"2011-06-16T09:14:17","guid":{"rendered":"http:\/\/www.taxresearch.org.uk\/Blog\/?p=10535"},"modified":"2011-06-16T10:14:17","modified_gmt":"2011-06-16T09:14:17","slug":"new-on-forbes-has-the-international-financial-reporting-standard-foundation-pressed-the-self-destruct-button","status":"publish","type":"post","link":"https:\/\/www.taxresearch.org.uk\/Blog\/2011\/06\/16\/new-on-forbes-has-the-international-financial-reporting-standard-foundation-pressed-the-self-destruct-button\/","title":{"rendered":"New on Forbes: Has the International Financial Reporting Standard Foundation pressed the self destruct button?"},"content":{"rendered":"

I've got a new blog on Forbes t<\/a>hat looks at the\u00a0proposed\u00a0reform of the IFRS constitution.<\/p>\n

The reform is wholly negative. as I say in the Forbes column about these reforms, which narrow the defined usage of financial statements to\u00a0speculators\u00a0in\u00a0financial\u00a0markets alone:<\/p>\n

The only people who now, apparently, have an interest in the accounts of companies are investors and other market participants who are seeking to make decisions on \u00a0resource allocation within capital markets.\u00a0Other users of financial statements have disappeared from view. Unquoted companies are no longer of concern. Anyone seeking information for any purpose other than investment is now ignored. \u00a0Any concept of stewardship on the part of the directors gone: \u00a0the only issue of concern now is dealing for investment gain.<\/p>\n

And yet this leaves massive question marks at the heart of the whole\u00a0International Financial Reporting Standard \u00a0process. \u00a0In the space available I can raise only a few, but each in itself is enough to suggest this approach is wrong. \u00a0If, as the IFRS Foundation are now suggesting accounts are only for speculators, where is the long-term investor get the information that they need? And if accounts are only for markets, where do the regulators, tax authorities, \u00a0creditors, civil society, and others get their information on the activities of a company? And what about companies that will be never traded on financial markets? Are the IFRS foundation now saying that their standards are of no relevance to companies that are not quoted on markets? Or that they have no relevance in countries where financial markets have not reached that stage of development? And Why, very importantly, if IFRS are to be solely about provision of information\u00a0for\u00a0speculators\u00a0should \u00a0the resulting standards be applied to the accounts of not-for-profit organisations, and even governments themselves (who are now using them)?<\/p><\/blockquote>\n

What will happen?<\/p>\n

I suggest that here. <\/a><\/p>\n","protected":false},"excerpt":{"rendered":"

I’ve got a new blog on Forbes that looks at the\u00a0proposed\u00a0reform of the IFRS constitution. The reform is wholly negative. as I say in the
 Read the full article…<\/em><\/a><\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[67,26],"tags":[],"class_list":["post-10535","post","type-post","status-publish","format-standard","hentry","category-accountancy","category-accounting"],"_links":{"self":[{"href":"https:\/\/www.taxresearch.org.uk\/Blog\/wp-json\/wp\/v2\/posts\/10535","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.taxresearch.org.uk\/Blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.taxresearch.org.uk\/Blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.taxresearch.org.uk\/Blog\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.taxresearch.org.uk\/Blog\/wp-json\/wp\/v2\/comments?post=10535"}],"version-history":[{"count":0,"href":"https:\/\/www.taxresearch.org.uk\/Blog\/wp-json\/wp\/v2\/posts\/10535\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.taxresearch.org.uk\/Blog\/wp-json\/wp\/v2\/media?parent=10535"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.taxresearch.org.uk\/Blog\/wp-json\/wp\/v2\/categories?post=10535"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.taxresearch.org.uk\/Blog\/wp-json\/wp\/v2\/tags?post=10535"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}