IASB faces more funding controversy

IASB faces more funding controversy

Attempts to clarify the funding of the International Accounting Standards Board could fail tomorrow after news emerged that it might publish an incomplete list of its financial donors.

Trustees overseeing the work of the IASB decided to publish a list of backers following allegations in the US that Enron may have tried to influence the accounting body with an offer to donate funds.

At a public meeting tomorrow in London, the trustees will vote on whether to publish a list of donors that contributed to its $18m budget in 2001.

Sources close to the body told Accountancy Age that four large corporate donors do not want their names made public. The revelation will deal a fresh blow to Paul Volcker, chairman of the trustees, who appeared before a US senate committee to answer questions about international accounting standards and Enron.

Volcker has denied the IASB ever received funds from Enron.

Sydney Lipworth, a British trustee, told Accountancy Age: ‘We would wish to publish as complete a list as we can. The broad intention is to publish a full list.’

Although he refused to comment, Lipworth said: ‘Four would be a small percentage’.

‘There are no secrets. We will confront it as we come to it,’ he added.

Sir David Tweedie, head of the IASB, said that Paul Volcker is feeling ‘bruised’ after US senators’ levelled allegations of secrecy at the organisation. Sir David also voiced his fears that this could lead to Volcker ‘walking away from the IASB’ if the furore continued.

David Cairns, a former head of the International Accounting Standards Committee, the body in charge of the IASB, revealed trustees stopped publishing a list of donors in the mid to late 1990s.

He said: ‘I cannot for the life of me see why the Trustees did not carry on with the old (correct) policy.’

Share

Subscribe to get your daily business insights

Resources & Whitepapers

Why Professional Services Firms Should Ditch Folders and Embrace Metadata
Professional Services

Why Professional Services Firms Should Ditch Folders and Embrace Metadata

3y

Why Professional Services Firms Should Ditch Folde...

In the past decade, the professional services industry has transformed significantly. Digital disruptions, increased competition, and changing market ...

View resource
2 Vital keys to Remaining Competitive for Professional Services Firms

2 Vital keys to Remaining Competitive for Professional Services Firms

3y

2 Vital keys to Remaining Competitive for Professi...

In recent months, professional services firms are facing more pressure than ever to deliver value to clients. Often, clients look at the firms own inf...

View resource
Turn Accounts Payable into a value-engine
Accounting Firms

Turn Accounts Payable into a value-engine

3y

Turn Accounts Payable into a value-engine

In a world of instant results and automated workloads, the potential for AP to drive insights and transform results is enormous. But, if you’re still ...

View resource
Digital Links: A guide to MTD in 2021
Making Tax Digital

Digital Links: A guide to MTD in 2021

3y

Digital Links: A guide to MTD in 2021

The first phase of Making Tax Digital (MTD) saw the requirement for the digital submission of the VAT Return using compliant software. That’s now behi...

View resource