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Motion in UK Parliament opposing IFRS 8

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03 May 2007

Thirteen members of the United Kingdom House of Commons (Parliament) have submitted a Parliamentary Motion urging both the UK government and the European Commission to carry out "urgent and in-depth impact assessments on IFRS 8 'Operating Segments' – a standard that, in their view, is "totally unacceptable".

The draft resolution is below. See also our News Story of 27 April 2007  for a similar resolution under consideration by the EU Parliament.

Accountability of multinational companies

That this House finds International Financial Reporting Standard (IFRS) 8, concerning disclosure of operating segments by multinational corporations, totally unacceptable because it gives company directors carte blanche to decide what they disclose and how they disclose it and does not require consistency of disclosure either between periods or between companies and therefore fails to create a clear standard for disclosure to help investors, abolishes previous requirements for geographical disclosure and allows different accounting rules to be applied to segment information from that used in the rest of a company's financial statements; and therefore urges the UK Government and the European Commission to carry out their own urgent and in-depth impact assessments on IFRS 8 and require multinational companies to adopt, in addition to any segment data they disclose, full country-by-country disclosures of all activities in each geographical jurisdiction in which they operate, together with details of turnover, profits and taxes paid in each of those territories.

 Click for further information on the Parliamentary Motion.

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