Regulators push for ‘stewardship’ in reporting

Accounting regulators from Europe and the UK have published a
discussing the rationale for including stewardship, or
directors’ accountability to shareholders, as a separate objective of financial

Among the regulators to have participated are the European
Financial Reporting Advisory Group
, the UK’s Accounting Standards
Board (ASB)
and a number of other European accounting standard-setters.

The idea was first proposed by IASB and FASB in their July 2006 Discussion
Paper ‘Preliminary Views on an improved Conceptual Framework for Financial
which said a converged framework should specify only one
objective of financial reporting, that of ‘decision-usefulness’ for resource
allocation. They argued that this objective ‘encompasses providing information
useful in assessing management’s stewardship’.

Further reading:

US edges closer to standard harmony

Mary Keegan scores on Queen’s Honours list

The IFRS 8 row is still ringing in our ears

Related reading

Fiona Westwood of Smith and Williamson.