Investors question standard setters’ focus

INVESTORS have questioned whether or not the International Accounting Standards Board is prioritising their needs in the headlong rush for convergence with the US.

Liz Murrall, director of corporate governance and reporting at the Investment Management Association, said the global standard setters’ strong focus on US approval should not be allowed to sideline investor views.

She warned that high-quality global standards could be sacrificed to the ultimate aim of a 100% sign-up rate and cautioned the IASB to keep quality and users’ requirements in mind at all times.

However, Murrall said the body is “on the right track” with projects such as fair value accounting and moving from an incurred loss model to an expected loss model.

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Fiona Westwood of Smith and Williamson.