The G20 leaders should 'bite the bullet' and push the US into committing to International Financial Reporting Standards, says ICAS. In a presentation to the International Federation of Accountants, Hugh Shields, ICAS chief economic adviser, urged for the standard setter to work 'in tandem' with the US Financial Accounting Standards Board on proposals to modify financial reporting. The plea comes after recent pressures placed on the International Accounting Standards Board and the FASB from politicians to modify how financial institutions such as banks account for their assets, including impairment losses. But Shields warned also that the government must understand that the key purpose of financial reporting is to convey the true economic reality of business performance. He said: 'Politicians naturally want financial stability at the moment, but we are fooling nobody if we change accounting measures so as to give an artificial impression of stability'. In addition, Shields urged the G-20 governments to recognise that the accounting profession is only doing its job properly if it is able to 'tell it straight'. He said: 'Accounting should not be used as a policy tool to reduce pro-cyclicality.'