Finance minister back IASB ‘shake-up’
EU finance ministers want broad base of financial contributors
The International Accounting Standards Board will face changes to the way
it is funded after Europe’s finance ministers endorsed a financing shake-up.
The aim is to make it less reliant on donations from big accounting firms and
avoid conflict of interest scenarios when deciding international accounting
standards.
Ministers agreed a declaration that the IASB should have a ‘very broad base
of contributors’ spread across the world, ‘so as to avoid conflicts of
interest’.
The possibility that the IASB should be funded ‘partly through public means’,
if a new voluntary funding system does not work, will remain, the FT
reported.
The IASB’s budget is expected to rise to £17m by 2008.