RegulationAccounting StandardsIASB and FASB increase convergence pace

IASB and FASB increase convergence pace

IASB chairman said he is on track to meet 2011 convergence deadline

The US and international accounting rule makers will redouble their efforts
to converge their two sets of rules, now meeting monthly to make their June 2011
deadline,
WebCPA
reports
.

The International Accounting Standards Board (IASB) and the Financial
Accounting Standards Board are working feverishly to harmonise their two
accounting languages, with a view to form truly global accounting rules, if the
US adopts the rules.

Speaking to an audience of accountants in New York, IASB chairman Sir David
Tweedie was confident he could meet the 2011 deadline, reaffirmed at the recent
G20 meeting.

“We’re going to work on these issues together every month…That’s why we think
we’ll make our June 2011 target date,” he said.

The pair have significant hurdles to jump. They each are proposing different
fair value standards – measurement rules which force companies to value assets
at their market value. The rule was blamed for exaggerating the effects of the
financial crisis as assets, especially financial instruments, lost close to all
their value in stagnant markets.

FASB is proposing a model which values all assets at fair value. The IASB is
proposing a mixed measurement model which will see banks’ loan books valued at
amortised cost.

The two standard setters are keeping their draft converged standards under
lock and key to avoid sending mixed messages.

“If we have different words, people will start interpreting them
differently,” Tweedie said.

Read the full
story:IASB
and FASB to Meet Monthly on Standards Overhaul

Related Articles

FASB to modify fair value election option

Accounting Standards FASB to modify fair value election option

5y Rick Martin
Tweedie contradicts Haldane’s stance on accounting rules

Accounting Standards Tweedie contradicts Haldane’s stance on accounting rules

5y Richard Crump, Writer
ICAS' Savoy stand-ups impress TS

Accounting Standards ICAS' Savoy stand-ups impress TS

5y Taking Stock
Tweedie to lead push for global valuation rules

Accounting Standards Tweedie to lead push for global valuation rules

5y Richard Crump, Writer
ICAEW warns against prohibiting the use of fair value

Accounting Standards ICAEW warns against prohibiting the use of fair value

6y Richard Crump, Writer
World is waiting as US dithers over IFRS

Accounting Standards World is waiting as US dithers over IFRS

6y Richard Crump, Writer
FSA: Fair value accounting contributed to RBS failure

Accounting Standards FSA: Fair value accounting contributed to RBS failure

6y Rose Orlik
Fair value in focus for new accounting standard

Accounting Standards Fair value in focus for new accounting standard

7y Rose Orlik