French expected to lobby for greater IFRS control
G20 to see Christine Lagarde lobbying on reporting standards
French finance minister Christine Lagarde is expected to lobby her G20
colleagues in Scotland this weekend for more political control of international
accounting standards, according to reports in the press.
The Wall Street Journal claims that Lagarde remains concerned that
the International Accounting Standards Board lacks political oversight, though
she is expected to have little success with this argument among her fellow
finance ministers.
The paper’s headline even declares “Paris mounts the barricades”.
The profession was confused last month by remarks from Largarde in a piece
for the Financial Times.
She wrote: “Further progress is also needed on accounting standards.
Regulators should have their say on their ultimate purpose and ensure they do
not promote volatility.
“Market value must be used, when relevant, in considering how a business uses
its assets. But it should not be an excuse for failing to measure, assess and
account. This is not a political issue but rather a matter of concern for
society.”
Some saw the remarks as meaning that standards should be manipulated to aid
financial stability, a view not held among UK regulators.
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French finance minister society and accounting