New Structure Proposed for International Accounting Standards Development: A Status Review

On May 24, 2000, the members of the International Accounting Standards Committee (IASC) approved a new structure that provides for the establishment of an independent international accounting standard setter. The story of the recent efforts of the IASC to develop a new structure reveals a wise realization that globalization has imposed heightened demand for worldwide accounting standards. The status review that follows relates only to restructuring proposals of the IASC. The discussion includes: the rationale for a new structure; the current structure of the IASC; the general nature of the proposed restructuring; other initiatives in envisioning a global standard setter; an overview of responses in comment letters; the revised proposal of the SWP; implementation underway; and comments