Barry C. Melancon, president and CEO of the American Institute of Certified Public Accountants, speaking at a roundtable of global accounting leaders in New York City this week called for a permanent, independent funding mechanism for the International Accounting Standards Committee Foundation, the governing body of the International Accounting Standards Board.
"We believe it is imperative the foundation find a permanent funding solution for the International Accounting Standard Board's activities", Melancon said at a roundtable discussion on the IASB's 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 IASB's role as an independent accounting standard setter", Melancon said.
Based in London, the IASB sets global accounting rules known as International Financial Reporting Standards and is 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.