The central committee of the Israeli Institute of Certified Public Accountants (IICPA) yesterday decided to recommend that the Accounting Standards Board postpone the transition to nominal financial reports from 2003 to 2004, unless inflation is unusually high nbext year.
The Accounting Standards Board will convene on September 17 to discuss the transition from inflation-adjusted accounting to nominal accounting in financial reports.
It is considered likely to adopt the postponement since its two member bodies - the IICPA and the Israel Securities Authority - both support it in principle, due to the recent jump in inflation.
IICPA president Ofer Minirav said that Israel's economic leaders - the Bank of Israel and the Finance Ministry - had failed to stabilize prices, and had caused economic uncertainty. But if inflation in 2003 is single-digit, then the 2004 transition will be automatic, he said.
Under pressure from central committee members, that note was removed from the final decision, along with the single-digit inflation proviso, and it was recommended that nominal accounting should come into effect in 2004.
Two IICPA professional committees last month recommended suspending the transition to nominal accounting. Central committee member Kobi Navon said the standard should be revoked entirely since inflation-adjusted reports better reflect the current situation and are essentially nominal reports.