On international accounting standards (Sharon Bowles MEP)

Sharon Bowles MEP <info@sharonbowles.org.uk>

On international accounting standards

November 12, 2007 12:00 AM
By Sharon Bowles MEP in European Parliament

Adoption of the IFRS 8 standard will enable our companies to use the standard for the current financial year and put an end to uncertainty.

The management approach will enable our companies to report publicly, with the same structure used internally, thereby reducing the burden of reporting. Users will have access to information that was previously kept internally. So IFRS 8 is a win for both the companies and the investors.

But I have some concerns about the impact assessment that follow a pattern about which I have spoken before. Respondents this time seemed predominantly producers rather than users, and with regard to users there were no questions on comparability. A more pro-active approach may need to be taken with respect to impact assessments generally, and it certainly cannot have helped in this instance if one hoped-for sector of respondents does not have key questions posed.

Further, some of the justifications in the report do very little to justify. Indeed, to me they look more like the type of document that is written ahead of meetings in the hope of reaching agreement.

I am very British about this and prefer my minutes and responses and reports to look like they were drafted after events.

I regret that European companies have been kept waiting for our endorsement of the standard, but Parliament should not be expected to give its assent, on a say-so, without time and proper information to make an assessment.

However, I am pleased that there has been an improvement in cooperation recently, and I look forward to that continuing.