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Better information more important than convergence: analysts

Published: December 22nd, 2009 5:08pm
Source: TA

Analysts back the convergence process but rate improving the usefulness of accounting information for financial instruments a higher priority and are unconvinced about the mixed measurement model proposed for IFRS 9, according to a CFA Institute poll.

Analysts back the convergence process but rate improving the usefulness of accounting information for financial instruments a higher priority and are unconvinced about the mixed measurement model proposed for IFRS 9, according to a CFA Institute poll.

The survey of 641 CFA Institute members, which was undertaken soon after IFRS 9 was released in November, found 85 percent of respondents thought convergence should remain an objective of financial reporting reform.

Almost 60 percent prefer that both the IASB and Financial Accounting Standards Board (FASB) work in a synchronised fashion and offer a single accounting solution, than pursue separate work plans.

The International Accounting Standards Board (IASB) released IFRS 9 Financial Instruments to overhaul controversial financial instruments standard IAS 39.

However, improving decision usefulness of accounting information (26 percent) rated almost four times higher than reducing complexity (8 percent) and seeking a converged standard between the IASB and FASB (6 percent).

The research also found analysts thought there was a need for application of fair value to a greater extent than is allowed under a mixed attribute model.