FASB moves closer to convergence
The US Financial Accounting Standards Board is today expected to publish proposals that would bring its accounting rules closer in line to the rest of the world.
Link: IAS Special report
It is thought that the board will signal a move away from rules-based accounting and towards a system of principles, similar to what is used in the UK.
Four areas will be tackled by the proposals. These are backdating changes to accounting policies, calculating earnings per share, valuing assets that are exchanged between businesses, and accounting for spoiled inventories.
The move will be a boon to the IASB’s plans for convergence of standards with FASB with a new joint working plan expected to be unveiled in the next three months.