IASB Oversight Body Responds to Call for Accountability

The Trustees of the IASC Foundation, the oversight body of the International Accounting Standards Board (IASB), announced constitutional changes that address recommendations made in comment letters from stakeholders, including the AICPA, as well as those made by G-20 leaders at the group’s November summit in Washington, D.C.

The constitutional amendments are intended to enhance public accountability by establishing a link to a monitoring board of public authorities, according to an IASC Foundation press release. The monitoring board will comprise leaders from the Emerging Markets and Technical Committees of the International Organization of Securities Commissions (IOSCO), the European Commission, the Japan Financial Services Agency and the SEC.

Strengthening the IASB’s accountability and financial security is among the milestones called for in a proposed SEC road map. The milestones would influence the SEC’s decision on whether to move forward with requiring U.S. issuers to convert to IFRS.

The IASB will be expanded from 14 to 16 members by 2012, with criteria added to ensure geographical diversity. Standards will also be made available for free through a Web site, and the IASC Foundation has pledged to work more closely with investors through a regular liaison with a wide range of investor groups represented in the reconstituted Standards Advisory Council.