The move to IFRS has been couched by supporters with the idea that a single set of accounting standards makes sense in the global economy. But what happens when individual countries start tinkering with the rules, making special rules for specific circumstances? We're getting a glimpse of that right now.

In October, under pressure from European politicians, the International Accounting Standards Board quietly changed some rules for the benefit of European banks, allowing alternative treatments for some troubled assets. The Washington Post notes the effects were dramatic in the case of Deutsche Bank, which was able to treat $32 billion of troubled assets in a way that turned a $970 million pretax loss into $120 million profit. But at what cost? Some say the credibility of the IASB has been gutted. You have to wonder if the idea of a global standard can work. Is there any way to keep politics out of the equation?

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