FASB sees its future as part of IASB
FASB will become the US branch of IASB if its chairman had his way
Robert Herz, Financial
Accounting Standards Board (FASB) chairman’s, wishful thinking is to see the
day when FASB will become part of the International Accounting Standards Board
(IASB).
Speaking at the
IFAC World Accountancy
Forum during World Accountancy Week, he said it would be a single
organisation, called the International Accounting Standards Board, but it would
have an office in the US ‘maybe in Norwalk, Connecticut’ where FASB is based.
He also envisioned the organisation to have branches in other countries such
as China and said FASB had not only been discussing accounting convergence with
the IASB, but had also had separate bilateral meetings with regulators in China,
Japan and other countries.
He believed IASB needed to continue to work on improving the funding
mechanism which supported the organisation and noted IASB did not have the
political standing of organisations such as FASB, which had been funded by
mandatory contributions since the passage of the Sarbanes-Oxley Act.
Further reading:
IFAC: Single standard key to economic growth
CIMA welcomes ‘principles-based’ IFAC documents