ACCA opposes using IFRS to measure taxable income
17 Jan 2004
A study commissioned by the Association of Chartered Certified Accountants (ACCA) has concluded that aligning tax and accounting rules during the changeover period to International Financial Reporting Standards (IFRS) will bring unnecessary complications for businesses and government.
ACCA has recommended that the British government not pursue that approach. The ACCA research report, A Conceptual Framework for the Taxable Income of Businesses, and How to Apply it under IFRS, by Professor Christopher Nobes of Reading University, examines the advantages and disadvantages of conforming tax practice with financial reporting practice and concludes that tax and financial reporting should have separate rules and, therefore, be disconnected. The full report may be downloaded from ACCA's Website (PDF 248k). Click for Press Release (PDF 22k).