The Governance and Regulation of International Finance

The Governance and Regulation of International Finance

Private Regulation series

Geoffrey P. Miller and Fabrizio Cafaggi

This thought-provoking book adds a new perspective to the analysis of how regulation should respond to the global financial crisis of 2008–2009. It focuses on the ‘private’ as opposed to ‘public’ aspect of regulation, and highlights the works of the public–private dialectic in regulation and enforcement.

Chapter 5: The legitimacy and accountability of the IASB as an international standard setter

Geoffrey P. Miller and Fabrizio Cafaggi

Subjects: economics and finance, financial economics and regulation, law - academic, finance and banking law, regulation and governance


Since its birth in 1973 the International Accounting Standards Board (IASB) has evolved to become the major international standard-setting organization of accounting standards. Its standards are already applicable in Australia, Brazil, the European Union, Russia, South Africa, and to some extent the United States, amongst other countries. Evolving from an organization that was created by the professional practice, and being private, questions have been raised about the independence, legitimacy and accountability of the international regime for accounting standards. These questions are serious since the standards elaborated by the IASB tend to become more and more relevant as time passes. The legitimacy of an organization as a regulator is dependent on the relationships it has with the communities in which it wants to be legitimized. The IASB has not derived its power as a regulator directly from any government, but constructed it from ground up.

You are not authenticated to view the full text of this chapter or article.

Elgaronline requires a subscription or purchase to access the full text of books or journals. Please login through your library system or with your personal username and password on the homepage.

Non-subscribers can freely search the site, view abstracts/ extracts and download selected front matter and introductory chapters for personal use.

Your library may not have purchased all subject areas. If you are authenticated and think you should have access to this title, please contact your librarian.

Further information