The IASB refuses to admit that. The IASB first has to conduct a special review to investigate what effect IAS 29 had in Zimbabwe, according to Michael Stewart, the IASB´s Director of Implementation Activities. The rest of the world´s accountants and economists generally accept that it is obvious that IAS 29 had no positive effect since the Zimbabwean economy imploded in 2008 during full implementation of IAS 29.
Not a single member of the International Accounting Standards Board and the IFRIC Interpretations Committee today realizes that or would admit that IAS 29 had no positive effect in Zimbabwe.
At IFRIC Interpretations Committee meetings and all other occasions they freely refer to IAS 29 as a fully effective IFRS. IFRIC members are completely oblivious of the fact that IAS 29 had NO POSITIVE EFFECT in Zimbabwe.
LISTEN to IFRIC members referring to and quoting IAS 29 as if it were a fully effective IFRS at the 23 September 2013 IFRIC meeting discussing Capital Maintenance in Units of Constant Purchasing Power. IAS 29 was ABSOLUTELY USELESS during the 6 years it was implemented in Zimbabwe´s hyperinflationary economy.
IFRIC and IASB members make decisions in terms of a 24 year old standard that was ABSOLUTELY INEFFECTIVE during the 6 years it was implemented in Zimbabwe. That is how the IASB and IFRIC operate.
The members of the IFRS Interpretations Committee ignorant of the fact that IAS 29 had NO POSITIVE EFFECT in Zimbabwe are:
| Wayne Upton Chairman, IFRS Interpretations Committee International Director, IASB | |
| Tony de BellGlobal Accounting Consulting Services Leadership Team PwC United Kingdom | 30 June 2016 |
| Luca Cencioni Senior Accounting Manager Eni Adfin S.p.A. Italy | 30 June 2014 |
| Reinhard DotzlawGlobal IFRS Panel KPMG Canada | 30 June 2016 |
| Feilong Li Executive Director, Executive Vice President & CFO China Oil Services Limited People's Republic of China | 30 June 2016 |
| John O'GradyAsia-Pacific IFRS Leader Ernst & Young Australia | 30 June 2015 |
| Jean Paré Vice President, Financial Reporting Bombardier Inc. Canada | 30 June 2014 |
| Joanna Perry Professional Non-Executive Company Director New Zealand | 30 June 2014 |
| Sandra PetersHead of Financial Reporting Policy CFA Institute United States | 30 June 2015 |
| Charlotte PissaridouHead of Accounting Policy for EMEA (Europe, the Middle East and Africa) and Asia Goldman Sachs United Kingdom | 30 June 2014 |
| Laurence Rivat Partner Deloitte & Associes (France) France | 30 June 2015 |
| Dr Martin SchloemerAccounting Principles and Policies Bayer AG Germany | 30 June 2016 |
| Scott A. Taub Managing Director Financial Reporting Advisors, LLC United States | 30 June 2014 |
| Andrew WatchmanExecutive Director of International Financial Reporting Grant Thornton United Kingdom | 30 June 2016 |
| Kazuo YuasaGeneral Manager, Corporate Finance Unit, Fujitsu Limited Japan |
The members of the IASB ignorant of the fact that IAS 29 had NO POSITIVE EFFECT IN Zimbabwe are:
Hans Hoogervorst (Chairman)
Appointed: 1 July 2011
Term expires: 30 June 2016 | |
Ian Mackintosh (Vice-Chairman)
Appointed: 1 July 2011
Term expires: 30 June 2016 | |
|
Appointed: 1 August 2007
Second term expires: 31 July 2017 | |
|
Appointed: 1 July 2006
Second term expires: 30 June 2016 | |
|
Appointed: 1 July 2012
Term expires: 30 June 2017 | |
|
Appointed: 1 May 2004
Second term expires: 30 June 2014 | |
|
Appointed: 1 July 2009
Term expires: 30 June 2014 | |
|
Appointed: 21 February 2013
Term expires: 30 June 2017 | |
|
Appointed 23 May 2013
Term expires: 30 December 2019 | |
Appointed from: 1 July 2009
Term expires: 30 June 2014 | |
|
Appointed: 1 July 2009
Term expires: 30 June 2014 | |
|
Term begins: 1 July 2011
Term expires: 30 June 2016 | |
|
Appointed: 1 October 2010
Term expires: 30 June 2015 | |
|
Appointed: 15 November 2012
Term expires: 30 June 2017 | |
|
| |
|
Appointed: 1 July 2007
Second term expires: 30 June 2017 |
The IASB staff are aware of the fact that IAS 29 had no positive effect in Zimbabwe: I confronted Michael Stewart about it during a teleconference on 8 January 2013. He stated the IASB was not able to give an opinion about the effectiveness of IAS 29 in Zimbabwe. According to Stewart the IASB first has to conduct a special review of what happened in Zimbabwe before the IASB can give its opinion about the matter.
The above people appear not to have the simple common sense and judgement to admit that IAS 29 had NO POSITIVE EFFECT in Zimbabwe´s hyperinflationary economy. This is very worrying when the above people are the members of the IFRIC Interpretations Committee and the International Accounting Standards Board. They are highly qualified and very well paid. They are the people entrusted with the task of defining IFRS, BUT they actually live in a fantasy world where IAS 29 - for them - is a fully effective IFRS when it, in fact, was COMPLETELY INEFFECTIVE in Zimbabwe´s hyperinflationary economy.
Michael Stewart very petty-mindedly stopped working with me on this matter when I told him in January 2013 that his statement that "financial reporting has NO EFFECT in the economy" was completely wrong.
We all make mistakes. The IASB, IFRIC and IASB staff are not aware that capital maintenance in units of constant purchasing power - their "restatement" - in terms of the MONTHLY published CPI is a mistake. It has to be Daily Indexing - actually following all changes in the general price level.
They are too prepotent and thus not open to proof of facts as confirmed by Hans Hoogervorst, the Chairman of the IASB. He informed me that the IASB requires "flexibility" to do their work. That is: "flexibility" to believe in their fantasy that IAS 29 is a fully effective IFRS when it, in fact, had NO POSITIVE EFFECT in the Zimbabwean hyperinflationary economy.
Nicolaas Smith
See: How to fix IAS 29
Copyright (c) 2005-2014 Nicolaas J Smith. All rights reserved. No reproduction without permission.
No comments:
Post a Comment