August 2010

Tweedie warns US to adopt standards or lose influence

From Accountancy Age.

The US could be stripped of any influence over global financial rules if it does not adopt them itself, the head of the international accounting standard setter has warned.

Sir David Tweedie, chairman of the International Accounting Standards Board (IASB), believes US influence on standard setting may diminish if it rejects international accounting rules next year.

Sir David told the Journal of Accountancy, in a video interview, the US had a lot of influence on the creation of accounting rules despite not actually using the rules domestically.

“One of the real dangers, if the US says no, is that there is a reaction and [international observers] want the US influence diminished,” he said.

“You will find for example that the [US influence] on the standards will be less, obviously, and if you decide to come in later on, you have standards that perhaps you’re not too keen on, that you had no influence over.”

The US is still deciding whether to adopt international accounting rules. The US standard setter, the Financial Accounting Standards Board, is attempting to harmonise its accounting rules with international standards.

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