PracticeAuditMcCreevy: EU should have more power over IASB

McCreevy: EU should have more power over IASB

The European Union should be given a bigger role in steering the International Accounting Standards Board, according to the European internal market commissioner in charge of financial regulation

Link: McCreevy meets IASB board in London

Charlie McCreevy said ‘representation within the international standard-setter (IASB) and within a public oversight body should correspond more appropriately to jurisdictions that directly apply the standards’.

If this was the case, Brussels’ influence over the way the rules are set would increase sharply, particularly as the EU – the largest single economic area committed to using IFRS – has more seats on the IASB’s boards.

McCreevy’s comments are not the first to counter the thoughts of IASB chairman Sir David Tweedie since the commissioner’s appointment in December last year. In a meeting with the IASB in January McCreevy said the new accounting procedures were too complicated and needed to be simplified.

The former Irish minister also questioned how the IASB should be funded without compromising its independence.

‘We are going to have to address the question of accountability, the question of money, how the (the IASB) is funded, while maintaining its independence,’ he said.

His comments follow a fall-out between the IASB and the EU over the new accounting standard for derivatives, IAS39. The EU feels the standard has not taken into account the interests of banks and businesses in the region.

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