|  | | 2005 News and Press Releases | | |
HEADLINE NEWS:
KPMG Reports IFRS Doubts Accounting Rules
Staff Writer – Financial Times
Securities Mosaic. November 28, 2005
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EXCERPT: Most analysts do not believe the introduction of International Financial Reporting Standards will give them any greater insight into a company's true financial position, according to a survey by KPMG, the accountancy firm, out today. The new standards, which take full effect when companies report their 2005 full-year results, are intended to narrow the differences between the mainly European standards and those applied in the US, making it easier for market regulators to accept foreign accounts.
As the date for full implementation neared, there was increased concerns about the impact of the new standards. The most recent complaints were about the proposed new standard for mergers and acquisitions accounting but there are broader fears that the accountancy bodies are creating new rules rather than simply harmonising those that exist. The belief that the new standards will make it easier to understand a company's true position has declined over the past year as analysts have become more familiar with them, the KPMG survey of 100 analysts showed. Just 47 per cent believe they will gain greater insights than before compared with 64 per cent in the same survey a year ago. Thirty-four per cent believe the new rules will make no difference and 16 per cent believe they will provide less insight. "It is still early days," said Mark Vaessen, head of KPMG's international financial reporting group. |
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