Leaders of the G20 nations must underline their commitment to a single set of global accounting standards when they meet in Pittsburgh this September, or unease about the future of International Financial Reporting Standards (IFRS) will grow, according to a policy paper from the Association of Chartered Certified Accountants.
The London-based body warned that “political interference in the standard process is more prevalent” and it was causing growing uncertainty around the future of the IFRS project.
The ACCA said that some European countries were pushing the European Union to gain exemptions from IFRS, a move that it said “would be a serious step backwards.” But it noted that the EU had already persuaded the International Accounting Standards Board to revise its rules on fair-value accounting.
The ACCA said there was also “growing unease within the accountancy profession” about the level of support for international standards from FASB and the U.S. Securities and Exchange Commission. It pointed to what it said were emerging differences between FASB and IASB on accounting issues and comments from SEC Chairman Mary Schapiro about her reluctance to delegate standard setting outside of the US.
“With the future of the U.S. IFRS roadmap uncertain and the global development of IFRS in question, G20 leadership is essential for maintaining commitment to a global solution and in seeking to avoid national or regional versions of IASB-issued IFRS,” said the ACCA.
Its comments follow a statement from the International Federation of Accountants (IFAC) calling on the SEC to commit the United States to an IFRS roadmap sooner rather than later.
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