Stockbrokers and CMA differ over reporting format

More inclusive

The International Financial Reporting Standards (IFRS), which contain details of financial reports, was recently changed to be more inclusive in terms of the amount of details included in published statements.

The income statement and the balance sheet were also renamed to statement of comprehensive income, and the statement of financial position respectively.

This followed misrepresentation of facts on companies’ dept level and profitability under the previous reporting standards that saw several firms collapse during the global financial crisis.

The new standards require that unrealised gains and losses be disclosed and should be part of the reported financial results as this gives a true reflection of a company’s actual financial health.

Similarly, Kenyan accountants are pushing for a review of the international rules to incorporate emerging issues and improve accuracy and reliability.

ICPAK says it has also developed a reporting template for small and medium enterprises (SMEs).