US body warms to international standards

The US professional body for accountants has voted unanimously to recognise
London’s International Accounting Standards Board as their global reporting

The amendment to the
rules gives members the option to use International Financial Reporting
Standards as an alternative to US Generally Accepted Accounting Principles.

The measure is another step in the gradual convergence of IFRS and US GAAP,
as the IASB and the Financial Accounting Standards Board continue their roadmap
and cooperation. However, the IASB will be joining several organisations already
recognized by the AICPA as standards-setters.

Other bodies include: the FASB, the Governmental Standards Accounting Board,
and the Federal Accounting Standards Advisory Board. The Council’s action now
adds the IASB to the list of designated accounting bodies, although, the FASB
will continue to set standards in the US.

The AICPA, and its CPA2Biz subsidary, have created a new web site,
providing information about the main differences between the two sets of
standards, including videos and training programmes.

The institute estimates the Securities and Exchange Commission could set a
date of 2013 for adoption of IFRS.

Related reading

Fiona Westwood of Smith and Williamson.