IASB: 'We're consistent with G20'

The international accounting standard setter has reassured the financial world that its work is consistent with calls made by world leaders at the G20 summit in London last week.

A statement from the IASB yesterday said it remains committed to a ‘single high set of standards’, as G20 asked for, but detailed issues that it had to resolve with the US standard setter FASB.

The US authorities recently issued fresh guidance on using fair value in inactive markets. These were reported as creating a gap between US and international standards. The IASB said it believes the guidance to be ‘broadly similar’ to principles in international standards. The IASB began an accelerated 30-day consultation on the issue which should report on 20 April.

However, the IASB said there were significant differences over the treatment of impairment. It intends to confirm the standard setter's position at a meeting on 20 April and restated its aim of producing a brand new standard in this area, rather than tackling the issue piecemeal. That new standard would replace the notorious IAS39 on financial instruments.

The IASB statement said: ‘The comprehensive project is to undertake, on an accelerated basis, the replacement of existing financial instruments standards … with a common and globally accepted standard that would address issues arising from the financial crisis in a comprehensive manner. The IASB plans to publish proposals within six months. This course of action is consistent with the call by the G20 ‘to reduce the complexity of accounting standards for financial instruments’.

Senior accountants have viewed the G20 communique as reaffirming the international accounting standards project and the IASB's place, led by Sir David Tweedie, leading the work.

There has been speculation that the US had gone cold on IFRS, but the G20 statements appears to give its backing to further convergence.