Sarah Johnson, CFO.com | US
February 8, 2008

I think IFRS 8 is a real shame

1. Who is entity?s chief operating decision maker (CODM)?There is no guidance on who the CODM.
2. International financial reporting standard (IFRS) 8 has been criticised by the public users of the financial statements for allowing directors too much freedom over disclosures?
3. Company directors decide what to disclose and how to disclose it
4. Does not require consistency of disclosure
5. Appears to have been issued to appease the Americans as away to minimise the differences between IFRSs and US generally accepted accounting principles -US standard FAS 131 without proper consultation and thought?
6. Some critics say IFRS ignores the needs of developing countries.
7. Makes no distinction between primary and secondary segements unlike IAS 14.
8. Gone are the prescriptive definitions of segment revenues, results, assets and liabilities. Segment liabilities need not be reported at all if management deem them unworthy of regular inspection.
9. The directors are no longer required to comply with published accounting policies in the determination of segment measures..its a laissez-faire affair.
10. IFRS 8 is more keen on narrative disclosure than numerical.
11. IFRS 8 does not require analysis of Cashflow yet Cashflow is a key factors on analyzing a company?s financial position.
12. IFRS 8 may result in meaningless disclosures given the level of discretion directors are given
13. IFRS 8 may result in lots of reconciliation of IFRS 8 figures to balance sheet and income statement making the financial statements more complicated.

Posted by vincent nyawai | Jul 20, 2009 8:09 PM ET

Hoofmarks of the Maverick

The road to International Accounting Standards began in the mid-1990's with Arthur Andersen & Co. S.C. initiating an effort in the GAAT [WTO]. That project led to a WTO "working party" on accounting standards. RFK

Posted by ROBERT F. Kelley | Feb 8, 2008 2:03 PM ET