Global accounting standards grow amidst economic crisis

Thesupport for global standards among chief financial officers and investors has increased since the start of the economic crisis in 2008, an international survey by the Association of Chartered Certified Accountants has revealed.The report, titled, Towards Greater Convergence gauged the value that investors and CFOs see in International Financial Reporting Standards and other global standards. A statement by the association on Tuesday said the findings provided compelling evidence for policy makers and regulators that global convergence would be beneficial on a number of fronts.According to ACCA, the survey of 163 CFOs and investors across the United States, Europe, Asia and the Middle-East finds evidence that access to capital for companies has increased and its costs has been reduced by IFRS adoption.The Chief Executive Officer, ACCA, Ms. Helen Brand, said the research revealed that respondents increasing familiarity with global standards in financial reporting continued to break down resistance to their implementation.She pointed out that more than 40 per cent of respondents said that IFRS had improved access to capital, while around a quarter stated that adoption had lowered capital costs.The researchs other findings showed that the effect of the financial crisis had improved the perception of global standards among investors and issuers, with over 52 per cent saying they viewed global standards such as IFRSs more positively in the wake of the economic crisis than in the last few years.It also showed that 60 per cent of respondents took international standards as facilitators of more consistent regulation.
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