Tommaso Padoa-Schioppa, a founding member of the Executive Board of the European Central Bank, will replace former Federal Reserve chairman Paul Volcker at the helm of the foundation that oversees the International Accounting Standards Board, effective January 1.
Sir David Tweedie, IASB’s chairman, was reappointed to another five-year term.
Padoa-Schioppa, who also has served as chairman of the Basel Committee on Banking Supervision, “has been a strong proponent of the need for international accounting standards,” said Volcker, in a statement. “He has earned the respect of financial officials and market participants not only in his home country of Italy and in Europe generally, but in the world at large.”
Volcker added that Tweedie “will assure continuity in the effort to achieve consistent and widely applicable international accounting standards,” noting that the target date for the removal of reconciliation with U.S. GAAP is set for no later than 2009.
The Financial Times asserted that replacing Volcker, an American, with an Italian might be intended to address European Commission concerns that IASB is insensitive to its European constituents. The newspaper also noted that while there is broad support for common accounting standards in Europe, there is a perception that the new standards are making financial statements very tough to understand and that IASB lacks accountability.
IASB’s oversight foundation also reportedly named seven new trustees, including Samuel DiPiazza, chief executive officer of PricewaterhouseCoopers, and William McDonough, former chairman of the Public Company Accounting Oversight Board.