ACCA urges G20 to adopt global reporting language
Discussion paper calls for April's G20 Summit to address financial regulatory framework
09 Mar 2009
ACCA has launched a discussion paper calling for the members of the forthcoming G20 Summit, taking place in London on 2 April, to establish a new architecture for global financial and economic relations, saying that steps must be taken to improve the transparency and stability of financial markets.
'The G20 have many problems to solve - how to cope with the increasing complexity of financial markets, how to strike a balance between financial innovation and the management of systemic risks, and what the role of global co-ordination of financial regulation should be,' said Richard Aitken-Davies, ACCA president.
'Specifically, the G20 need to endorse the benefits of International Financial Reporting Standards (IFRS) because they bring transparency, comparability and clarity to reporting in the interests of shareholders, business and the wider public. It is a major failing that IFRS are not already the global accounting language for all finance professionals.
'Priority must be placed on ensuring that existing legislative and regulatory measures are implemented and enforced effectively. Rushing through large swathes of new legislation is not the answer. In areas such as accounting, over-prescribed global measures could backfire. Issuing standards that result in mechanical rule-following would be a recipe for disaster. Principles-based standard setting and professional judgement have a vital role to play in supporting business confidence and economic recovery.'
The discussion paper also calls for a rigorous review of global governance and the role of international financial institutions. World leaders will need to consider whether there should be a formal agreement to make global governance a long-term feature of the G20 agenda.
Download the The G-20 summit, April 2009 document.