International accounting standard setters face 'death or glory' over the next two years, according to one of its most senior figures.

The IASB must resist extreme pressure against a European carve-out from its standards around fair value accounting, and push towards convergence with the US or face going out of existence, warned Accounting Standards Board chairman Ian Mackintosh.

'These pressures bring about threat or opportunity. It's death or glory,' said Mackintosh this morning at the launch of the ICAEW's financial reporting faculty.

But it has a 'good chance' of winning its battles.

'It could well be that the pressures are resisted, a good chance of this. If the US came on board in 2011, then the members of [the IASB] could sit back and say "mission accomplished".'

The institute launched its financial reporting faculty today at Moorgate Place, including speeches from Tom Jones, vice-chairman of the IASB, and professor Ray Ball, Sidney Davidson professor of accounting at the Chicago Booth School of Business.

Ball said that fair value accounting had flagged up the toxic nature of many investments, and that previous examples showed that not using fair value could cause bigger economic problems.

'Fair value will continue to play a positive role in the recovery from the crisis,' said Ball. 'Fair value has pointed up problems in the system. The challenge ahead for IFRS and fair value is to resist external pressure.'

Further reading:

Schapiro may put IFRS roadmap on ice

For more about the new faculty visit the ICAEW's website