Mario Christodoulou, Accountancy Age, Tuesday 17 August 2010 at 09:19:00

Timeline undermines European concerns about lack of transparency

The International Accounting Standards Board (IASB) has outlined the stepstaken so far to replace its high profile chairman, in response to Europeanconcerns it was not being transparent.

Ina newly created section of the IASB website, the body has outlined theprocess it has followed since September 2009, as it searches to replace chairmanSir David Tweedie, who steps down in June 2011.

Among the documents isaletter sent to the European Commissioner?s office in 3 December, 2009, from SirBryan Nicholson, who has led the IASB?s recruitment process.

?I write now to brief you on the process that we plan to follow, and to seekany input that you may have of names to be considered,? he said in the letter.

Among the recipients was Charlie McCreevy, predecessor to Michel Barnier whois current European Commissioner for Internal Markets.

The letter underminesclaimsby senior European officials they have not been kept in the loop during therecruitment process. Yesterday, theFinancialTimes newspaper quoted unnamed senior European officials close to Barnier?soffice who said: ?The process has not been as open and thorough as it could beand the commissioner believes the monitoring board should be fully involved inthe process?.

Barnier is a member of the five-man Monitoring Board ? the IASB?s supremeoversight body. Members of the Monitoring Board were sent a letter on 29 Julyfrom IASB Trustees which suggested a candidate to replace Sir David. The letterreportedly upset the commissioner who wants more input into Sir David?sreplacement.

The Monitoring Board has no constitutional power to appoint the IASBchairman, but it is still kept up-to-date by IASB trustees, who will ultimatelydecide which candidate is chosen.

Further reading:

IASBChair search

Europeanofficials frustrated at "lack of transparency" over Tweedie replacement

Huntfor IASB head hits hurdle

Candidatesin frame for top IASB role