Accountants to get Brussels watchdog
Accountants - 19/07/2006 14:38:12
A watchdog has been appointed to oversee guidance from the European Financial Reporting Advisory Group (EFRAG), who represents accountants from across Europe.
The Standards Advice Review Group has been created to ensure that advice on the International Financial Reporting Standards (IFRS) compliance with EU law is "well-balanced and objective".
An EU spokesperson said: "As EFRAG is a private body, it is important for the high quality, transparency and credibility of the endorsement process."
The IFRS was brought in to ensure uniformity and transparency in financial reporting around the world, with many companies switching from the Generally Accepted Accounting Principles (GAAP).
But a recent report from PricewaterhouseCoopers (PWC) has indicated that, while accountants and audit committees have a good grasp, chief executives still don't fully understand the IFRS.
The report indicates that implementation costs were higher than expected and that many finance directors believe these outweigh the benefits of producing IFRS accounts.
PWC has recommended companies invest more in training senior employees so they can understand reports produced by their accountants.
Why not talk to accountants in your area about the IFRS or any other financial question you may have.