G20 must promote IFRS

Convergence to IFRS is essential if the global economy is to receover, according to reports released by the ACCA and the ICAEW. Read original article.

Two of the UK's leading accounting bodies, the ACCA and the ICAEW, are calling for leaders to champion the global adoption of IFRS at this April's G20 summit.

The ACCA has released a discussion paper arguing that G20 leaders should endorse the benefits of IFRS because they will bring ‘transparency, comparability and clarity to reporting in the interests of shareholders, business and the wider public’.

ICAEW chief Michael Izza also spoke out, suggesting that convergence towards IFRS is losing momentum and that the new US administration should make a concerted effort to get onto the IFRS roadmap.

"We live in a world where global issues require global solutions", said Izza. "A fragmented financial reporting system will continue to hamper comparability and transparency across borders".

ACCA president Richard Aitken Davis called it a 'major failing' that IFRS is not already the global accounting language for all finance professionals, and argued: "Priority must be placed on ensuring that existing legislative and regulatory measures are implemented and enforced effectively. Rushing through large swathes of new legislation is not the answer"

The G20 leaders’ summit is due to take place in London on 2 April.