Europe Criticizes Lack of Transparency in IASB Appointment

Jack Humphrey, Regulatory journalist
August 22, 2010 /

European politicians are not happy at the lack of transparency in the process of finding a new chairman the IASB (International Accounting Standards Board) follows.

The fresh criticism has started over the history of complaints from Europe as to the working style of IASB.

Criticism had also flowed about the working style of Sir Tweedie, who is the current Chairman of IASB and his prioritizing of the US adopting international rules. It was felt that this happened at the cost of Europe’s interests.

The Financial Times has reported that the successor of Sir Tweedie should have been announced way back in the summer months, but it now looks like as if the announcement will be made in October.

Officials who are close to Michel Barnier, who is EU’s Internal Market Commissioner, has confirmed his unhappiness over the lack of transparency in the process. They want the process to be slowed down and made transparent to EU member states.

It has been reported that in a letter dated July 29, headhunters who have been appointed by the monitoring committed and the board of trustees of IASB suggested a successor and effectively said ‘take it or leave it’.

A senior source at EU said that the commissioner has made it very clear that he wants a huge improvement in the way IASB is governed.

It has been further reported that the Commissioner feels that the process of selecting a Chairman has not been as open and thorough as expected and also felt that the board should be fully involved in the process.

There is one contender to the post of Chairman whose name has cropped up constantly, Ian Mackintosh. He is the current head of the UK Accounting Standards Board and Sir Tweedie is known to favor him as well.

 

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