Changing the rules of the accounting game

European lawmakers recently asked for International Financial Reporting Standards (IFRS) to be changed so that companies don't have to reflect economic reality in their financial statements. Accordingly, two things should be noted about IFRS, the new accounting rules coming to Canada. First, th...

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Bibliographic Details
Published in:Canadian business (1977) 2008-12, Vol.81 (21), p.19
Main Author: Rosen, Al
Format: Magazinearticle
Language:English
Subjects:
Accounting changes
Amendments
Fair value
Financial statements
International Financial Reporting Standards
Online Access:Get full text
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Summary:European lawmakers recently asked for International Financial Reporting Standards (IFRS) to be changed so that companies don't have to reflect economic reality in their financial statements. Accordingly, two things should be noted about IFRS, the new accounting rules coming to Canada. First, the people who set the rules bend quickly to the will of companies and politicians when the end results become unattractive. Second, the recent rule change in Europe was aimed at curbing the effects of fair-valuing assets, which is a major strike at the very heart of IFRS. While small forests have been sacrificed to explain the pros and cons of fair-valuing financial assets, there has been little focus on how it impacts the validity of the IFRS movement as a whole, or on the collateral damage to Canada.
ISSN:0008-3100
2292-8421