A dramatic shift of power lies ahead for the international accounting standard setter, which will in future be overseen by a monitoring group.

The group will act as a link between the International Accounting Standards Committee’s trustees and public authorities, and will have the authority to not only approve trustees ­ who govern the International Accounting Standards Board ­ but may hold meetings with the chairman of the trustees or the IASB chairman, about any area of work.

Those appointed to the group would strive to convey the message that the standard setter is transparent and accountable to public authorities.

For many the announcement is overdue, since the IASB’s process of standard setting has earned it the wrath of both civil campaigners and parliamentarians at the EU.

Gerrit Zalm, chairman of the IASCF, has acknowledged that it is a priority. And just last week, SEC chairman Christopher Cox stressed the need for a ‘public policy oversight body’ to watch over the IASB.

But for some, the thought of a group with the authority to raise questions about the IASB’s work, or the decisions of the trustees, may seem too close for comfort.

Senior industry figures suggested the group could have far too much influence on the actual agenda of the board, and fear interference of a political nature since the group is regionally represented. A source familiar with the IASB said: ‘There is concern about the monitoring group, politics and regionalisation, with the danger that there is a chance for politicians to interfere as they take regions into account… [the proposals make the process more political and therefore more difficult.’

Others however are not satisfied with the proposed composition of the new monitoring group, which currently looks to be represented by securities regulators of the different major capital markets.

Transparency campaigner Richard Murphy, who has publicly opposed the IASB over its lack of accountability, said the draft missed the point of the monitoring group. ‘There is no recognition of other stakeholders who might have an interest in financial reports prepared using IFRS… this body needs representatives of civil society and some indication of a democratic process,’ he said.

IASB chairman Sir David Tweedie is thought to be comfortable with the proposals and that they will not hinder his independence to determine the IASB’s agenda.

Issues surrounding the group’s role will be discussed at a series of roundtables that begin on 13 June.