IASB accelerates off balance sheet project
'The IASB is committed to move the projects forward expeditiously' - Sir David
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’