A Vital Accounting Principle

Summary


THE moment last year when French President Jacques Chirac phoned his German opposite number Chancellor Gerhard Schroder to try to get a united front against the latest Anglo-American outrage - International Accounting Standards - instantly passed into accounting folklore. Never in living memory had a politician shown the slightest interest in accounting issues of any description, let alone sought to lobby against a proposed rule.

The amusement soon passed, however, because as the Financial Services Authority's John Tiner was saying in a speech today to the annual meeting of the Institute of Chartered Accountants, there is an important principle at stake.

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Extract


A Vital Accounting Principle

French ire was specifically aroused by IAS 39, a proposal to oblige companies to account for the economic activities of the derivatives they hold - in accordance with the surely acceptable principle...

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