U.K.'s Tweedie Takes Helm at New IASC.

• Author: Heffes, Ellen M.
• Position: Sir David Tweedie and International Accounting Standards Committee - Brief Article - Interview

The man is on a mission. The mission: to lead the worldwide financial community in harmonizing accounting standards. Why now? "The markets want it to happen," said Sir David Tweedie, named board chairman of the newly structured United Kingdom-based International Accounting Standards Committee (IASC). Tweedie was formerly chairman for 10 years of the U.K. Accounting Standards Board.

Tweedie, who began his open-ended term on January 1, explained that markets want one set of high-quality global standards for three main reasons. First, for multinational companies with worldwide subsidiaries, the current cost of harmonizing one's own accounting [books] is enormous.

Secondly, for investors. "Countries are not getting investment because investors are not sure about accounting models, and [are] a bit suspicious about them. If they all use the same methods and the accounting for one transaction is the same in Sydney as it is in Seattle, as in Strasburg, as in Sheffield, then they know where they are," said Tweedie.

The third reason, he said, is a result of the Asian financial crisis, where people "really got very worried about the accounting," feeling there wasn't enough transparency -- certainly not compared to the Anglo-Saxon countries, particularly the United States. That led to a demand for a higher level of accounting in these countries.

On the international scene, Tweedie said, "it's quite clear we all share the same idea that it's senseless having different accounting standards in Britain and the U.S.; we've got to have the same standards, and neither of us think ours entirely are the best, We know we've got flaws and the other has better...