IASB trustees announce monitoring board
Standard setter forms board to monitor development of international accounting standards
The trustees of the IASB have made a major advance in convergence efforts by
establishing a monitoring board to oversee the shaping of international
accounting rules.
US standard setters had demanded the trustees had public accountability as
one of
the
key requirements of IFRS adoption.
The monitoring board will be made up of representaives from the Emerging
Markets and Technical Committees of the International Organization of Securities
Commission, the European Commission, the Japan Financial Services Agency,and the
US Securities and Exchange Commission. The Basel Committee on Banking
Supervision will sit as a formal observer at monitoring board meetings.
Gerrit Zalm, chairman of the trustees, and former deputy prime minister and
finance minister of the Netherlands, said: ‘The Trustees have responded
positively on the questions of public accountability and IASB membership. We
recognise the need for change in the emerging global framework of
standard-setting.
‘The IASB as an independent standard-setter and the Trustees as the oversight
body are strengthened by the enhanced governance provided by the link to public
authorities through the monitoring board.
‘The new arrangements ensure the independence of the IASB within a broader
oversight and monitoring system.’