Campaigners attack IASB award

Campaigners have attacked the International Accounting Standards Board over its communications, despite the standardsetter being given an award for transparency.

The One World Trust received a formal complaint about the IASB report into NGOs and its accountability this week.

In the 2007 Global Accountability Report, the International Accounting Standards Board was identified as a ‘high performer’, ranking a first for evaluation and second for transparency by the trust ­ a body that credits transparency and accountability of global organisations.

But the IASB has had a torrid year, with critics from the investor community worried it is not listening and a two-pronged attack from both political campaigners and investors over the segmental reporting standard IFRS 8.

It has even seen the European Parliament criticise the IASB for not listening to its constituents.

Richard Murphy, a key figure in the criticism of IFRS 8, has complained to the trust, as has Prem Sikka, professor of accounting at Essex University.

One of the authors of the report, Michael Hammer, said the report was about systems rather than necessarily about performance.

‘The report is about capability, not necessarily about the practice element itself,’ said Hammer.

Hammer added that the trust would consider the points raised by Murphy. ‘We will look at the criticisms levelled if an organisation feels that what we’re portraying is not actually what the organisation is like,’ said Hammer.