European Parliament adopts report on IASB and IASCF

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25 Apr 2008

By vote of 373 in favour to 21 against with 13 abstentions, The European Parliament has adopted a report calling for improvements to the governance of the IASB and the IASCF "to address concerns that they may lack transparency and accountability since they are not under the control of any democratically elected parliament or government".

The report was previously approved by the Parliament's Committee on Economic and Monetary Affairs in February 2008. The Parliamentary resolution adopting the report welcomes steps already taken by the IASB and the IASCF to address these issues but argues that there is more to be done. The report calls for "a debate on integrating the IASB into the system of international governance with the IMF, OECD and World Bank". That process has already begun. The Trustees of the IASCF, at their March 2008 meeting, agreed to propose creation of a Monitoring Group as a way of putting in place 'structured contacts' with public authorities with a legitimate interest in accounting standard setting:

The IASCF Monitoring Group would be responsible for approving all Trustees. Consultation international organisations would be required. It is likely that the proposed Monitoring Group would be composed of:

  • four members of the International Organization of Securities Commissions (IOSCO), represented by the Chairman of the Japan Financial Services Agency, the Chairman of the US Securities and Exchange Commission, the chair of the IOSCO Emerging Markets Committee, and the chair of the IOSCO Technical Committee;
  • the responsible member of the European Commission [currently the Commissioner for Internal Market and Services];
  • the managing director of the International Monetary Fund; and
  • the president of the World Bank.
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