Residual Power

Wrote about how the responsibility for setting financial accounting standards in Canada had been improperly delegated to the International Accounting Standards Board.

Letter from late Finance Minister Flaherty does not explicitly endorse what has happened here.

A government always has the residual legislative power. If a federal or provincial government disagrees with an accounting standard established by the International Accounting Standards Board, it may direct that those affected need not follow it. If a government loses confidence in the entire standard-setting role of the International Accounting Standards Board, the government may directly assume such role.

In terms of the history of bank accounting and the role of governments in setting accounting standards believed to be in the better public interest…


About brucelarochelle

Practising Lawyer and Part-Time University Instructor (Accounting, Commercial Law, Organizational Behaviour); Part-Time Federal Tribunal Member. Non-practising Chartered Professional Accountant (Chartered Accountant and Certified Management Accountant).
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