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03 Jun 2010
The International accounting rulemaker said it will not reach full convergence with US accounting rules by its June 2011 deadline, following concerns there was not enough time to fully consider the implications of new rules.
International Accounting Standards Board chairman (IASB) Sir David Tweedie and his US counterpart, Financial Accounting Standards Board (FASB) chairman Robert Herz, wrote to G20 leaders as they met in Gwacheon City, South Korea, informing them of the delays.
The pair said while “many of the projects” will be completed by the June 2011 deadline, “the target completion dates for a few projects have extended into the second half of 2011”.
Both FASB and the IASB has come under pressure to push back their timetable following concerns from accountants, businesses and analysts that they would be bombarded with standards, preventing them from offering meaningful feedback.
The boards would have had to release 10 standards by July to maintain their June 2011 commitment.
Overnight, US Securities and Exchange Commission chairman Mary Schapiro also released a statement where she said she believed the extension would “contribute to increased quality in the standards”.
Schapiro has previously made US adoption of international standards conditional upon reaching the 2011 deadline, among other benchmarks.
Yesterday, she said she considered the delayed timetable “time that is well invested”.
“Quality financial reporting standards established through an independent process are threshold criteria against which the Commission’s future consideration of the role of IFRS in the U.S. reporting system will be based,” she said.
“I am confident that we continue to be on schedule for a Commission determination in 2011 about whether to incorporate IFRS into the financial reporting system for U.S. issuers.”
Further reading:
Chairman Schapiro Statement on FASB-IASB Decision to Modify Timing of Certain Convergence Projects
IASB and FASB update to G20 Leaders
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