Comments on IFRSs by IOSCO leader
04 Mar 2006
Michel Prada, Chairman of the Technical Committee of IOSCO, delivered the (PDF 56k) at a recent roundtable on global accounting convergence sponsored by the Financial Stability Forum in Paris on 16 February 2006. Mr.
Prada addressed a range of issues, including trends in worldwide accounting and auditing standards, the processes for setting standards, the recent changes to the IASCF Constitution, structural changes within IFAC, "adoption, equivalence, harmonisation, and convergence in relation to IFRSs", the importance of a set of IFRSs for small and medium-sized entities, and the need for a 'standard setting pause' ("some stability over the next 3 years may well be needed for the transition to be really completed and digested by the stakeholders"). Here is an excerpt:
We should thus be satisfied to see that today IFRS are accepted in about 75 jurisdictions, the word 'accepted' meaning either a required or permitted use. But this absolute number does not mean much in terms of financial markets. It is more meaningful to observe that:
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