RegulationAccounting StandardsIASB announces new governance procedures

IASB announces new governance procedures

Last minute changes now allowed in exceptional circumstances

The International Accounting Standards Board (IASB) has adopted an emergency
trigger to accelerate due process in exceptional circumstances.

The amendment was one of a number of amendments to its constitution,
following a meeting of trustees in Brazil last month.

The amendment will include an “accelerated due process” in exceptional
circumstances.

In October 2008, the IASB suspended its normal due process, under pressure
from Europe, and, controversially, carved out key sections of its fair value
standard.

The new constitutional provision may now provide a framework for similar
situations in the future.

During a fecund few days, the trustees hammered out nine changes aimed at
increasing transparency and its international legitimacy as more countries take
on international accounting rules.

Among the changes, the IASB, headed by chairman David Tweedie, also
reaffirmed its commitment to promoting international standards.

The IASB’s constitution will now emphasise that convergence with American
standards is a strategy aimed at promoting and facilitating the adoption of
international rules, but is not an objective by itself.

The move will likely go someway to appease some critics of the convergence
project who fear the IASB was becoming distracted.

The changes may also go some way to addressing US concerns about the board’s
transparency.

Further reading:
Trustees
announce further governance enhancements

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