The American Institute of CPAs said that it backs the creation of a monitoring board that would link the International Accounting Standards Board to government regulators in different countries.
In a letter to the IASB’s parent organization, the International Accounting Standards Committee Foundation, AICPA chairman Ernest Almonte and president and CEO Barry Melancon commented on the IASC Foundation’s constitution and expressed support for the monitoring board. “In creating the MB, the IASCF provides a reasonable approach to help allay concerns that political and regulatory leaders from various countries might have in supporting a shift from national accounting standards for public companies to those promulgated by the IASB,” they wrote.
But they cautioned that all the parties must exercise “due care” so that the monitoring board “does not in fact or appearance impinge on the IASB’s independence in setting accounting standards.”
The AICPA also urged the IASCF to continue its efforts to find a permanent funding solution for the IASB’s activities. “This solution will result in increased worldwide confidence in the IASB’s role as an independent accounting standard-setter,” wrote Almonte and Melancon. “In the United States, we encourage the Securities and Exchange Commission to use part of the current levy on U.S. public companies for accounting standard-setting activities as a permanent funding source for the IASB.” A permanent funding solution, they noted, would aid convergence efforts with the Financial Accounting Standards Board.
Almonte and Melancon also recommended that the international body include representatives from private companies. “If in the future many nations adopt the IASB’s standard for private entities, the AICPA believes that the private entity financial reporting constituency should have appropriate representation on the IASCF and the Standards Advisory Committee,” they wrote. “This representation would provide a better consideration of issues faced by private entities.”
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