A cashflow and credibility deficit

Stephen Bouvier (stephenbna@mac.com)

At a time when the liquidity of financial institutions has seized center stage on the IASB’s agenda, Stephen Bouvier examines the case of an accounting standard setter with a cashflow deficit.

The funding arrangements that underpin the activities of the International Accounting Standards Board (IASB) are of critical importance to the US Securities & Exchange Commission (SEC). So much so that at least one SEC Commissioner has expressly linked the issue of US adoption of IFRS to the IASB’s funding arrangements. Speaking during an 27 August open meeting of the Commission, at which the regulator unanimously voted to propose a roadmap for US business to move to IFRS reporting, Commissioner Elisse B Walter said: