OECD To Dive Into Accounting Standards Bog

by Justin Gorringe, Tax-News.com, London

04 April 2002

Alongside its delisting of the British Virgin Islands, the Organisation for Economic Cooperation and Development (OECD) has invited the BVI to participate in a new grouping to develop international standards for the filing and auditing of accounts.

This group will develop filing and/or auditing rules for companies, partnerships, trusts and other legal entities in the OECD and non-OECD member countries. The BVI was pleased to be involved in the OECD's new Ad Hoc Group on Accounts, said Chief Minister Ralph O'Neal: "This is an issue of considerable importance to our local private sector and I have every confidence that they will be happy that we will be at the table where these critical international accounting standards-setting issues are being discussed and finalised."

Mr O'Neal paid tribute to the part played by the International Tax & Investment Organisation (ITIO) in helping the BVI to take part in the world-wide search for acceptable global standards: "by sharing views, intelligence and analysis with ITIO colleagues and other targeted countries from around the world and by working with them on common positions, the BVI's ability to respond effectively to the many challenges facing us has been considerably enhanced."

The International Tax and Investment Organisation is a grouping of thirteen small and developing economies set up in March 2001 to help form a response to global tax and investment challenges. It currently comprises Anguilla, Antigua and Barbuda, Bahamas, Barbados, Belize, British Virgin Islands, Cayman Islands, Cook Islands, Malaysia, St Kitts & Nevis, St Lucia, Turks & Caicos and Vanuatu. The Commonwealth Secretariat, Pacific Islands Forum Secretariat, Caribbean Development Bank and CARICOM Secretariat have observer status.

The relationship of the OECD's standards-setting body to existing international accounting standards bodies is unclear. Currently a major battle for dominance is taking place between the relevant US and EU bodies, and the arrival of another initiative will certainly complicate matters.

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