By Huw Jones
LONDON, Feb 8 (Reuters) – The world’s most influential accounting rule setter is not answerable enough to users or the public and must improve its governance further, top financial regulators said on Monday.
International Accounting Standards Board (IASB) rules are used in over 100 countries, including the European Union, with Canada, Japan and Brazil adopting them as well. The United States, however, is still mulling its position.
The IASB will become more powerful next year when its rules form the basis for a single set of global standards as called for by the G20 group of countries, sparking calls for the London-based body to be more accountable and transparent.
David Wright, deputy head at the EU’s European Commission internal market unit, welcomed the creation of a separate board of public authorities, including the EU executive, to monitor the IASB but more improvements were needed.
“We feel there is much work to be done. The debate about …governance will continue because it’s unfinished,” Wright told a Commission hearing on accounting and auditing.