Attempting to balance the books of the world, account leaders are calling for a permanent independent funding source for the International Accounting Standards Board.
U.S. accountants currently answer to the Norwalk-based U.S. Financial Accounting Standards Board.
Barry C. Melancon, president and CEO of the American Institute of Certified Public Accountants, called for a permanent, independent funding mechanism for the International Accounting Standards Committee Foundation, the governing body of the International Accounting Standards Board.
“We believe it is imperative the foundation find a permanent funding solution for the International Accounting Standard Board’s activities,” said Melancon.
Melancon laid out his thoughts recently at a roundtable discussion on the International Accounting Standards Board’s constitution in New York City.
“A permanent funding solution would ensure that the international board has appropriate resources to carry out its mission and would lead to world-wide confidence in the IASB’s role as an independent accounting standard setter,” said Melancon.
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Melancon said the international board will continue to become the global standard for the preparation of public company financial statements.
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Based in London, the international board sets global accounting rules known as International Financial Reporting Standards (IFRS) that are recognized in 113 countries. The U.S. Securities and Exchange Commission is considering whether to require U.S. publicly traded corporations to use IFRS for financial reports in U.S. markets as soon as 2014.
The U.S. Financial Accounting Standards Board in Norwalk sets the country”™s generally accepted accounting principles.
The proposed changes seek to establish a sustainable funding to help insulate standard setters from short-term political pressures.
“We strongly support the eventual use of a single set of high-quality, comprehensive global accounting standards by public companies in the preparation of transparent and comparable financial reports throughout the world,” said Melancon.
According to Melancon, in the U.S. the American Institute of Certified Public Accountants will encourage the Securities and Exchange Commission to use part of the current levy on U.S. public companies for accounting standards as a permanent funding source for the London-based international board.
