Piercing the corporate veil (TT Jun06 p34-36)

IFRS can be seen to pierce the corporate veil by requiring disclosure of information provided internally to key management personnel and which is used to drive the decision-making process.IFRS 7 disclosure requirements are designed to enable the user to evaluate the significance of financial instruments on the financial position and performance of an entity. The introduction of the standard reflects the fact that companies are involving themselves in activities more commonly associated with that of the banking world.