September 25, 2012 / 11:04 PM / 5 years ago

Former top accountant Tweedie to push for global valuation rules

LONDON (Reuters) - David Tweedie, who led the drive towards global accounting rules, will head a body working for international consistency in the valuation of derivatives and other financial instruments - addressing a need highlighted by the financial crisis.

The London-based International Valuation Standards Council said Tweedie will chair its board of trustees from the end of October to set strategic priorities and persuade countries to switch to its global rules and develop a valuation profession.

He is the former chairman of the International Accounting Standards Board and over 20 years turned the goal of global book-keeping rules into a reality in over 100 countries, with only the United States among top economies yet to commit.

Tweedie said the lack of global valuation rules hampered accountants trying to price derivatives and other instruments held by cross-border banks when markets dried up in the 2007-09 credit crunch.

Valuation standards, which grew out of the property sector, remain the purview of a patchwork of national institutes with no consistency in how they are applied.

“It’s where accounting was 10 years ago but worse, as it’s unregulated. The idea is to pull it all together,” Tweedie told Reuters on Tuesday.

“We are trying to inject credibility and turn it into a profession, to make sure things are done by people that are accredited and disciplined if they get it wrong,” Tweedie added.

During his three-year term he will target the United States, Europe, Japan, Canada and China to sell the idea of common global valuation standards that are consistently applied.

Reporting by Huw Jones; Editing by Anthony Barker

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