IASB proposes change to company contributions
The IASB is considering proposals to collect its funding directly from companies
The body, which drew up international financial reporting standards, wants to
change the current system, which relies on voluntary contributions from a small
number of private companies, accounting firms, central banks and international
organisations.
The organisation, whose funding requirements are overseen by the
International Accounting Standards Committee, reported total financing of about
£9.6m in 2005, of which Europe contributed £2m through 43 donors. The US
contributed just over £2m, with 44 donors, while the four global firms each gave
£500,000.
At a meeting held last year to determine a new funding system, the IASC
revealed that many of the initial pledges were due to run out and alternative
funding arrangements would have to be arranged.
FRC chief executive Paul Boyle said that ‘about a dozen’ UK firms contributed
to the IASB, which catered for the entire UK and international industry. ‘The
intention of our proposal is to add to these existing donations by way of an FRC
levy so that whatever comes into the FRC will also constitute a levy that will
go towards the IASB,’ he said.
Mark Byatt, a spokesman for the IASB, confirmed the discussion on
restructuring the organisation’s funding. ‘There has been consultation between
the IASB and the FRC on this matter,’ he said.