Accounting rule makers should remain independent from 'undue commercial and political pressures', a group of recognised leading financial experts has warned in a report which defends accounting standards as 'not a root cause of the financial crisis'.

The Financial Crisis Advisory Group (FCAG), formed in the wake of the global economic meltdown by US and international accounting rule makers, today published its recommendations where it said the independence of standard setters should be maintained.

'We strongly believe that to develop high quality, unbiased accounting standards that are widely accepted, the [accounting] boards must follow their due process procedures, including wide consultation with interested parties, and our recommendations on possible new standards are not intended to pre-empt the outcome of that due process,' the report states.

Both the US and international standard setters have come under political pressure in the wake of the financial crisis to rethink their measurement and impairment rules.

FCAG also found accounting standards where not one of the root causes of the crisis, but that weaknesses in accounting standards and their application where brought to light by unfolding world events.

It cites the difficulty of applying fair value accounting in illiquid markets; the delayed recognition of losses associated with some financial instruments; issues surrounding the broad range of off-balance sheet financing structures; and the 'extraordinary complexity' of accounting standards for financial instruments, as weaknesses exposed by the crisis.

The International Accounting Standards Board is in the process of reviewing these rules.

FCAG also highlighted the importance of high quality reporting rules which it said plays an 'integral role in the financial system'.

'Financial reporting plays an integral role in the financial system by striving to provide unbiased, transparent and relevant information about the economic performance and condition of businesses,' the report states.

FCAG's report has already won some support with the Association of British Insurers (ABI), which released a statement supporting FCAG's findings this morning.

ABI director general Stephen Haddrill, who is a member of FCAG, said the report will help standard setters improve the usefulness and accuracy of financial reports.

'The financial crisis has emphasised the need for high-quality financial reporting. This report highlights the importance of independent accounting standard setting to investor confidence, as well as the need to avoid knee-jerk responses,' he said.