Peter Wyman says IFRS may not be fit for purpose

International financial reporting standards (IFRS) are flawed, according to former accounting heavyweight Peter Wyman.

Wyman, the former PwC partner who championed the industry and IFRS and received an OBE for his services to the accountancy profession, said the standards are too academic, complicated and unintuitive, The Daily Telegraph reports.

His comments were made as part of new research criticising British reporting standards, due to be published this week.

Wyman said many leading accountants – including himself – “were not wrong” to push IFRS, but admits the new research is “compelling in demonstrating that significant further work is necessary before IFRS can be said to be totally fit for purpose“.

He said: “The rules allowed banks to pay dividends and bonuses out of unrealised profits – from profits that were anything but certain. The system is still in place now – we can’t tell if similar problems are building up because there is no requirement to separate realised from unrealised profits.”

Wyman is currently University of Bath treasurer, chairman of the Somerset Community Foundation and Settled Estates, senior adviser to Albright Stonebridge and director of City of London Sinfonia.