29 July 2009

IASB: Financial Crisis Advisory Group publishes wide-ranging review of standard-setting activities following the global financial crisis

FCAG’s report articulates four main principles concerning effective financial reporting and its limitations, convergence of accounting standards and standard setter’s independence and accountability.

The Financial Crisis Advisory Group (FCAG), a high level group of recognised leaders with broad experience in international financial markets, published its recommendations related to accounting standard-setting activities and other changes to the international regulatory environment following the global financial crisis.

The report of the FCAG articulates four main principles and contains a series of recommendations to improve the functioning and effectiveness of global standard-setting. The chief areas addressed in the report are:

 

1.    Effective financial reporting

2.    Limitations of financial reporting

3.    Convergence of accounting standards

4.    Standard-setter's independence and accountability

Commenting on the report, Hans Hoogervorst, Co-Chairman of the FCAG said:

‘I urge policymakers around the world to study the report and to take note of its conclusions, especially the importance of broadly accepted accounting standards that are the result of a thorough due process. The report highlights the importance but also the limits of financial reporting. Accounting was not a root cause of the financial crisis, but it has an important role to play in its resolution.’

 

Full report

Press release

 

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