RegulationAccounting StandardsConvergence chasm shows no signs of closing

Convergence chasm shows no signs of closing

Ernst & Young study uncovers concerning evidence that the convergence minefield has not been defused

 Accounting regulators are still a long way from ironing out key differences
between IFRS and US GAAP for foreign private issuers, according to telling
research from
Ernst
& Young
.

The report – ‘Towards convergence: A Survey of IFRS to US GAAP differences’ –
reviewed the first set of IFRS statements produced by 130 foreign private
issuers  and how they reconcile their IFRS financial information to US GAAP. It
showed that there were still over 200 reported IFRS to US GAAP differences in
the FPI annual SEC filings.
The most marked differences were around business combinations, pensions and
financial instruments. 

E&Y’s US capital markets partners Alan Millings said: ‘Whilst companies
have tried to minimise reported differences, convergence is still some way off.’

Further reading:

‘Flawed’ map threatens convergence 

Tweedie in investor showdown over IFRS
8
 

EU and US unite over oversight moves

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