Senior partner raises IFRS regulation fears
Allister Wilson, senior technical partner at Ernst & Young, warns companies of IFRS regulation risks
Listed companies have been warned that regulators could well find problems
with their IFRS accounts over the next few months.
Speaking at CIMA’s annual conference, E&Y senior technical partner
Allister Wilson said that the fair-value model used in IFRS accounts undermined
the reliability of numbers – an issue that regulators were likely to probe over
the coming months.
‘Under the fair value model reliability of numbers becomes an issue and this
is going to be a risk when regulators start going through IFRS accounts,’ said
Wilson.
Wilson added that although there had been few examples of share-prices
suffering during the transition to IFRS, analysts and investors still had little
understanding of the standards because they were so complex.
