Moves are afoot to remove rule making powers from the International Accounting Standards Board, it has been claimed.
The body's chairman, Sir David Tweedie, is set to be quizzed by EU commissioners and European finance ministers this week, and it looks like he could be set for a tough time, the Observer reported.
Speaking to the newspaper, a source close to the European Commission, said: "There's a lot of anxiety in many countries and they wonder if the IASB is the right body for future rule setting. The clock is ticking."
There is also a worry that the IASB is something akin to an "old boys' network", with politicians from France and Germany harbouring the gravest concerns.
Recently, John Smith, a member of the IASB's board, stated that standard setters will be judged by their response to the current crisis.
He also stated that a more robust financial system must come out of the recent crisis.
