XVII World Congress of Accountants

The World Congress of Accountants met in Istanbul, Turkey from November 13 to 16, 2006. The theme of the second plenary session was capital market stability worldwide and the accounting profession. Sir David Tweedie (Chairman, IASB) explained why global accounting standards, based on principles and promoting the appropriate use of professional judgment are vital to an efficient global capital market. He suggested three simple tests for a good quality accounting standard: Can we explain the standard in one minute? Does it make intuitive sense? Is it written in plain English? He stressed that the accounting profession had a “once in a lifetime” opportunity to retrieve accounting standards from rule-based systems, but this will require: restraint on the part of preparers and auditors from demanding interpretations and detailed implementation guidance; and acceptance by regulators that the exercise of judgment in a principles-based environment will mean that two entities in similar circumstances might get different accounting answers. To learn more, visit the World Congress of Accountants website.