Convergence won't take place "at all costs": Tweedie
IASB say it will not compromise standards
International Accounting Standards Board (IASB) chief has said he will not converge with US rules “at all costs”, Reuters reports.
The US Financial Accounting Standards Board (FASB) and IASB have tried to harmonise their two accounting treatments to enable America to take on international standards.
The boards’ treatments diverge on a number of key issues however including their controversial fair value provision, which forces companies to value assets at market prices.
Speaking in Sao Paulo, IASB chairman Sir David Tweedie told reporters said he would not compromise IASB standards to move to the FASB position.
“Ultimately, we have to speak for the international community. If we disagree with FASB, we have to do what we think is right,” Tweedie said.
“We can’t converge at all costs. At present, (FASB) wish a much (less rigid concept of) fair value that we believe the rest of the world would accept or even think is appropriate.”
He also rebuked European critics of the fair value rule, saying they do not speak for the international community.
“We can’t keep changing (the accounting rules) for one particular part of the world… We cannot always allow Europe to tell us what to do. This is global. We are the IASB, not the European accounting standard board,” he said.
Read the full story: IASB plans no fair value changes for EU-chairman