The Institute of Chartered Accountants in England & Wales (ICAEW) has called for a "significant pause" in the International Financial Reporting Standards (IFRS) convergence program.
The ICAEW said it is requesting the suspension "in order to avoid burdensome costs and significant uncertainties for unlisted companies."
Eric Anstee, chief executive of ICAEW, said that further changes in the near term to U.K. standards designed to bring into effect IFRS requirements could backfire. He suggested that the international group should instead wait until a clear picture has emerged of the outcome of the international project on accounting by SMEs and other entities without public accountability.
In its response to consultation paper published by the Accounting Standards Board (ASB) in March 2005, the ICAEW recommends that the ASB reconsiders the pace and reach of its convergence program now that the International Accounting Standards Board (IASB) has prioritized the development of a set of simplified standards for entities without public accountability. The ICAEW has called upon the IASB to produce a significantly less complex set of standards for companies without external investors, using historical cost rather than fair value as the primary basis of measurement.
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