European ministers call for reforms of international accountancy board

Date: 11th July 2008

European ministers are putting pressure on the International Accounting Standards Board (IASB) to make itself more transparent and accountable.

Accountancy Age reported that a meeting of the Council of European Finance Ministers (Ecofin) called for the international body, which sets accountancy standards, to put in place a formal limit on the term of its chairman.

What's more, Ecofin threatened to slash its contributions to the body's funding if standards and transparency were not improved.

An expert in accountancy, Bournemouth University professor Stella Fearnley, explained the implications of the calls.

She told the website: "Ecofin is reflecting concern expressed to it from various quarters in Europe.

"One of the problems is the IASB's consultation process. The politicians wouldn't step in if things were going smoothly."

Financial Reporting Council chief executive Paul Boyle added: "[Ecofin is] obviously thinking about whether the European Union should spend public money in contributing to the International Accounting Standards Committee Foundation and the significance of their points is that they are effectively conditions which have to be met before funding has to be given."

The ISAB is an independent accounting standard-setter based in London.