The IASB has been defending it’s work to politicians, again.
International Accounting Standards Board chairman Sir David Tweedie was called to account this week at a meeting of European ministers in Luxembourg. Discussing the IASB’s review of the controversial fair-value and impairment rules in the wake of the banking crisis, Sir David said that he recognised the “absolute urgency of the project” with assurances to “move swiftly to ensure appropriate input” and confirmed that the project was on track for completion by the end of the year.
Meanwhile, US President Barack Obama’s chief financial advisor, Paul Volcker, has said that although there is ‘strong case’ to revise controversial fair value rules he warned against political interference in the setting of accounting standards. Speaking in China, the former Federal Reserve chairman said politicians should not interfere in standard setting and called for international consistency in accounting rules. ‘Political bodies in Europe and the United States or any other country are simply not the appropriate venue for reaching well-considered judgments that can be enforced internationally…We need a bit patience,’ he said.