American Institute of CPAs president and CEO Barry Melancon said there should be a permanent, independent funding mechanism for the International Accounting Standards Committee Foundation, the governing body of the International Accounting Standards Board, with some of the money coming from companies in the U.S.
We believe it is imperative the foundation find a permanent funding solution for the International Accounting Standard Boards activities, he said at a roundtable discussion on the IASBs constitution. A permanent funding solution would ensure that the IASB has appropriate resources to carry out its mission and would lead to world-wide confidence in the IASBs role as an independent accounting standard-setter.
Based in London, the IASB sets global accounting rules known as International Financial Reporting Standards 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 IASCF has proposed changes to its constitution that seek to establish a sustainable funding system for the board 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, and thus continue to strongly support the objectives of the IASCF and the IASB, Melancon said.
In the United States, the AICPA will encourage the SEC 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, Melancon said.
