marketwatch TECHNICAL UPDATE (TT DecJan09 p10-11)

The greater focus on the need for transparency on financial instruments, driven by current market conditions, have prompted the International Accounting Standards Board (IASB) to issue an exposure draft of proposed amendments to its IFRS 7 disclosure standard.

A research paper from accountants’ body ACCA considers the effects of accounting standards on the cost of equity and whether improvements in accounting and disclosure quality are driven by mandatory standards or market incentives.