IASB accelerates off balance sheet project

The international standard setter is to accelerate its projects which address off-balance sheet issues.

Chairman of the International Accounting Standards Board, Sir David Tweedie, announced the moves on Friday in a speech at the Empire Club of Canada in Toronto, where he spoke of the role of the standard setter following the global credit crunch.

Off-balance sheet rules came under scrutiny as the rules allowed companies to keep risky investment structures off their books, until these ran into trouble as the markets plunged.

'For our consolidations and derecognition projects, ones that directly address off-balance sheet issues, the IASB is committed to move the projects forward expeditiously. The IASB will also put together an advisory group to help us address the issue of valuing financial instruments in illiquid markets,' he said.

The standard setter recently denied the project had lost momentum as a result of staff turnover.

Further reading:

Banks face rules for 'strict and detailed' disclosure

Key IASB project is 'not under-staffed'