Deloitte 2006 review emphasises our support for IFRSs

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23 Oct 2006

Deloitte Touche Tohmatsu's Worldwide Member Firms 2006 Review reports worldwide revenues for the year ended 31 May 2006 of US$20 billion, an increase of 11.5 percent in local currencies.

The 84-page annual review addresses various issues currently being debated across capital markets that consider how best to meet investor demand for reliable and timely financial data. Deloitte reiterated our strong support for International Financial Reporting Standards, for national adoption of IFRSs as a whole without modifications, and for convergence of IFRSs and US GAAP:

Achieving global consistency In a global economy, investors would benefit significantly from consistent high-quality financial reporting across markets. This, however, can only be achieved if there is greater uniformity in the way accounting, governance, business practice standards, regulation, and oversight systems are developed and applied. Importantly, such consistency would support the improvements professional services firms have made in enhancing audit quality.

Deloitte member firms support the adoption and implementation of International Financial Reporting Standards (IFRS). As countries undertake this task, their ultimate objective should be to implement IFRS as a whole to avoid the formation of hybrid standards and therefore inconsistency. Further, preparers and issuers must be given sufficient time to adjust to the global standards, so that implementation is effective and consistent with the way the standards were intended to be applied.

Deloitte member firms also strongly support the efforts of the International Accounting Standards Board (IASB) and the Financial Accounting Standards Board to achieve convergence or mutual recognition between IFRS and U.S. GAAP. They applaud the IASB's acknowledgement that principle-based accounting is its aspiration. If markets moved toward more principle-based accounting, accountants and auditors could more easily apply their professional judgment, which is relatively more difficult to do under highly prescriptive standards.

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