The IASB: the problem of one uniform model when it is the wrong one

Posted on

I’m told one member of the audience at yesterday's meeting where Adair Turner spoke about the need to transform the accounting of banks asked:

whether a failed standard setter should be able to fail, given free market principles..?

A panellist from the right wing American Enterprise Institute said "good question" and:

it hasn't failed financially but it has failed intellectually, so it should be allowed to fail.

and added:

It shows the problem of one uniform model when it is the wrong one

which rather reminds me of Voltaire who said:

It is dangerous to be right in matters where established men are wrong.

Not spoken in jest, I suspect.