EU official attacks IASB governance
Securities chief says IASB governace needs revamping from scratch
Sir David Tweedie
A top EU official has attacked the international accounting standard setter
suggesting its governance needs a complete overhaul.
Reuters reports that Eddy Wymeersch, chairman of the European Securities
Regulators (CESR), questioned whether there was enough accountability at the
IASB.
Reuters quotes Wymeersch saying: “I can remind you the CESR thought it should
be in the monitoring group but that did not take place. In my view, this has to
be drawn up again and start from scratch.”
Wymeersch was speaking at a meeting of the European parliament’s economic and
monetary affairs committee.
The EU is yet to endorse the IASB revamp of fair value accounting led by
chairman Sir David Tweedie. It is understood that some countries, including
Germany and France, believe reforms do not go far enough in restricting the use
of fair value accounting.
Fair value has been under attack since the beginning of the credit crunch
with top businessmen and politicians blaming the accounting principle for the
massive write-downs that took place across many financial services institutions.