|  | | 2007 News and Press Releases | | |
HEADLINE NEWS:
Global Accounting Board Cheered, Jeered for Transparency, The international accounting standard-setter gets praise for clarity and accountability, but some observers heatedly contend the board's work is murky.
Alan Rappeport
cfo.com. December 11, 2007
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EXCERPT: The London-based International Accounting Standards Board is seen by some as the future financial reporting standard-setter for the entire world. Last week, One World Trust, a research consultancy, seemed to strengthen the case for that possibility by providing the IASB with stellar marks for organizational transparency and accountability. Others, however, have found the body to be painfully opaque in their dealings with it and have issued a formal complaint in response to the board's lofty grades. One World's 2007 Global Accountability Report , ranked IASB second for both overall accountability and for transparency among 20 corporate and non-governmental organizations. It ranks fifth when organizations such as the United Nations Development Program and the Asian Development Bank are included. The report noted that the "principles of consultation and transparency have been embedded in the IASB's statutes right from the beginning." One World Trust defines transparency accessibility and timeliness when providing information to stakeholders and the provision of a clear picture of its structure and activities. But critics contend that the IASB, which promotes transparent accounting standards around the world, has been less than transparent in its dealings with constituents and is undeserving of the award. Prem Sikka, an accounting professor at University of Essex, and Richard Murphy, of Britain's Tax Justice Network, both sent letters to One World Trust chastising its praise of the IASB. Both lobbied forcefully against the IASB's adoption of a controversial accounting standard last year. |
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