It is a body central to global business. But it has attracted little attention on a broad scale, and particularly from politicians. Until now…

The International Accounting Standards Board is entering a new and perhaps dangerous phase, as parliaments cast a beady eye over its decisions. Gerrit Zalm, the new head of the IASB’s trustee committee, is the man tasked with soaking up that pressure, and steering a course for the future through the choppy political waters.

What's happened?

As global convergence has picked up pace, so too has the IASB grown accordingly in stature.

Over 100 countries have now switched their accounting systems to IFRS. Zalm, 55, is more than qualified for the job of managing the body’s growing pains.

He is the longest-serving Dutch finance minister, served as minister in five Dutch cabinets from 1994 until 21 February 2007, and is known for the implementation of a new budgeting system (the Zalm-norm). Zalm retains a formidable reputation outside the Netherlands, and most notably in Brussels, where his steadfast approach to European fiscal issues earned him the respect of his peers.

Zalm’s task ahead lies not only in pushing along global convergence, but in successfully lobbying stubborn constituencies who appear to be resisting it. MEPs have been strikingly critical of the IASB recently, calling it ‘undemocratic’ and targeting a new segmental reporting standard in particular.

What's going to happen?

Zalm met with his critics last week, in particular Alexander Radwan, a German MEP who authored a critical report on the standards body. He also took the time to criticize local carve-outs of IFRS and gave a timetable for US convergence.

Those are two of the big issues the body is facing, but Zalm may find that his job involves more than just charm offensives in the corridors of the European Parliament. Every time the body produces new ideas for company accounting, and the row over how to report profits currently raging springs to mind, the MEPs will want to have their say.

The IASB’s job is difficult enough at the best of times: balancing the interests of different countries, the analyst and investor community, the practice profession and the preparers of accounts. Hold politicians into the mix, and the job just gets a whole lot harder.