IASB looks at fast track response to future crisis

The International Accounting Standards Board (IASB) could adopt a 'fast track' procedure to respond to future financial crises, Sir David Tweedie, IASB chairman, said yesterday.

He told Reuters political pressure from European leaders last month, which allowed banks to ease mark-to-market accounting rules over a four day period, showed the need to formalise processes, The Guardian reports. A fast-track procedure could be added to the board's constitution, which would be triggered by a request from the board to the trustees. 'We're going to clean up impairments,' Tweedie said.

Also in response to the financial crisis, an advisory group has been set up to look at the effects of financial reporting. The group will be co-chaired by Harvey Goldschmid, former commissioner of the US Securities and Exchange Commission, and Hans Hoogervorst, chairman of the Netherlands Authority for the Financial Markets.

Other issues the accounting standard setters were likely to analyse included categories such as 'held to maturity', and 'available for sale' and whether companies could make transfers between the categories, enabling them to avoid marking a security to market.

Further reading:

Fair value and IASB supporters watch out

Relief as IASB wins positive support from G20

Read the Guardian story