IASB funding falls short of 2008 target

Sir David Tweedie, chairman of IASB

Although donors have increased, the funding of the
Accounting Standards Board
(IASB) still fell short of its 2008 target. Of
the estimated £16m budget for 2008, the board has so far managed to raise only

Trustees have succeeded in establishing national funding regimes consistent
with the principles set by the International Accounting Standards Committee
(IASC), which, based on existing commitments, have raised an estimated £12.5m
from the participation of thousands of market participants.

To date, the three biggest country contributions have come from the US at
$US3.5m (?1.8m); Japan, $US2.8m; and Germany, $US1.9m, in addition to voluntary
payments of $US400,000 from central banks and international organisations, and
$US2m each from the big four accounting firms, US corporate finance publication
Financial Week reports. Audit firms BDO Seidman and Grant Thornton each
contributed $US150,000, and European accounting firm Mazars, $US100,000.

Criticisms have been levelled at the funding regimes by Robert Herz, chairman
of USA’s Financial Accounting
Standards Board
(FASB), and Robert Denham, chairman of FASB’s parent
foundation, who have said they ‘do not support moving US public companies to the
International Finance Reporting Standard until mechanisms to adequately fund the
IASB’s activities over the long term are developed.

Further reading:

High risk tax schemes set to be exposed

Herz calls for calm approach in IFRS
convergence rush

story in the Financial Week

Related reading

Fiona Westwood of Smith and Williamson.