From Prof D.R. Myddelton.

Sir, Michael Starkie (Letters, June 12) was quite right to draw attention to the weaknesses of the theoretical model being used by accounting standard-setters. A dozen years ago all the (then) six leading British accountancy firms expressed grave doubts about the UK Accounting Standards Board's draft Statement of Principles of Financial Reporting and its practical implications. (It was derived from the American Financial Accounting Standards Board's conceptual framework.) But the final version was little changed. It does not have “general acceptance” among British accountants.