Volcker tackled by McCreevy on IASC proposals

The clash over reform of the board that manages international financial reporting standards is set to continue as the European Union commissioner in charge of internal markets this week reaffirmed his determination to push ahead with demands for change.

Link: Volcker rebuffs McCreevy over IASB

Charlie McCreevy said that he and Paul Volcker, chairman of the International Accounting Standards Committee, have agreed to enter into intensive discussions on the EU’s proposed changes to the board.

McCreevy told Accountancy Age that he intended to push ahead with demands for reform as part of the IASC’s current constitutional review, proposals that were publicly rebuffed by Volcker last week when he met European officials in Brussels.

‘We sent our recommendations to the constitutional review and we don’t think they have taken on board our discussions. We want to get more of what we wanted,’ said McCreevy. ‘The main goals are to have more accountability and transparency in the selection process for trustees.’

McCreevy wants to see more Europeans at the IASC, a desire driven by the belief that the current form of the notorious IAS39 standard is underpinned by US interests.

European officials ordered a carved-out version of the standard to placate outraged European banks.

Tony Clifford of Ernst & Young said greater European representation on the IASC could make it even harder to produce a consensus. ‘If the EC had greater board representation we might have seen that the board would never have been able to agree on standards.’

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