The accounting body which sets International Financial Reporting Standards (IFRS) appointed two new European trustees on Monday but denied it had bowed to European Union (EU) criticism of how it takes decisions. The EU adopted IFRS in January - harmonising accounting across its 7,000 listed companies - but questioned the accountability of the International Accounting Standards Board (IASB) after European banks and regulatory bodies criticised the wording of two standards.

Last month Charles McCreevy, the European Commissioner for internal markets, said he would discuss with the IASB how it recruits its 14 board members and 19 trustees.

The accounting body said on Monday that the two European appointments, who replace a European and an American as trustees, were not connected to McCreevy's comments, however. The two European appointments are Oscar Fanjul, vice chairman of Spanish investment vehicle Omega Capital, and Antonio Vegezzi, president of Swiss Capital International.

Copyright Reuters, 2005