AICPA Urges IFRS Monitoring Board to Support Independence, SEC Funding for IASB

May 25, 2011

The AICPA urged the SEC to continue its efforts to find a way to help fund the IASB and asked the International Financial Reporting Standards Foundation Monitoring Board to be mindful of the need for independence of the IASB.

Dan Noll, CPA, AICPA director of Accounting Standards, attending the March 28 IFRS Monitoring Board roundtable at Stanford University, told the board: “Many of us here would agree on the critical importance of a stable and independent funding model for the IASB. We understand that the SEC will continue to study potential contribution mechanisms from the U.S.”

The Monitoring Board was formed by the IFRS Foundation Trustees in 2009 to enhance the IASB’s public accountability by establishing a link to securities regulatory authorities. Members of the monitoring board include the International Organization of Securities Commissions, the European Commission, Financial Services Agency of Japan, and U.S. Securities and Exchange Commission. The Basel Committee on Banking Supervision participates in the Monitoring Board as an observer.

In a letter to the board, the AICPA said the board should not have a more prominent role in the selection of the IASB Chair. As such, a more prominent role could be seen as impairing the IASB’s independence.

Read the AICPA press release.