For immediate release: Tuesday 7 November 2006

IMA CALLS FOR FINANCIAL REPORTS TO FOCUS ON SHAREHOLDERS

IMA has called for stewardship to be a separate objective for financial reports in its response to the International Accounting Standards Board's (IASB) discussion paper on the conceptual framework for financial reporting.  This would ensure that shareholders receive the historic and governance information they need to exercise their rights as shareholders effectively.

IMA is also concerned about proposals to focus financial reports on a wide range of users and not just shareholders.  Other users, such as creditors, employees, bankers, customers and suppliers, are already protected by contractual and other rights, and any information deemed to satisfy the needs of shareholders should be more than adequate for these other users.

Liz Murrall, Senior Corporate Governance Adviser of the IMA, commented:

"IMA members are major investors in companies and support the development of high quality international accounting standards.  However, the current proposals are flawed.  To ensure that the owners of a company and the providers of the risk capital receive the information they need, financial reports should focus on the shareholders, as opposed to a wider range of users and stewardship should be a separate objective".

IMA's response is attached.

-Ends-

For further information, please contact:
Helen Stephenson, Communications Officer, IMA, 020 7831 0898

Out of hours contact:
Mona Patel, Head of Communications, IMA, 07834 089332

Notes to editors:
1. The International Accounting Standards Board (IASB) is undertaking the joint Conceptual Framework Project in conjunction with the US based Financial Accounting Standards Board (FASB). The aim is to develop a common framework as a foundation for future accounting standards.  The discussion paper addresses the objectives and qualitative characteristics of financial reports