According to a Financial Times report published this week, the new International Financial Reporting Standards rules could have a significant effect on the 'big four' accounting firms, even as they advise other businesses on how to minimise the impact of IFRS on their organisation.
Under IFRS, capital paid in by a listed firm's partners is likely to be reclassified as long-term debt, a move which would impact significantly on its perceived assets and liabilities.
The FT suggested that:
"The change will put the big four in the uncomfortable position of having to play down the significance of accounting changes that critics have accused them of playing up to generate business."
The report went on to reveal that as the big four (Deloitte, PricewaterhouseCoopers, KPMG and Ernst & Young) are LLPs, they are under no obligation to implement IFRS. However, it stated that KPMG and Ernst & Young have committed to doing so for their current financial years.
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