FASB sees its future as part of IASB

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