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

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

the Guardian story

Related reading

Fiona Westwood of Smith and Williamson.