The head of International Accounting Standards Board (IASB) believes an
impasse on the fair value accounting rule can be reconciled,
Journal of Accountancy reports.
Sir David Tweedie, chairman of the IASB, blamed mismatched timing for the
differing views of the IASB and its US counterpart, the Financial Accounting
Standards Board (FASB).
The IASB split its financial instruments project into three phases, while
FASB has opted to release its reforms in a single project.
The IASB’s model uses a mixed measurement approach to value assets, while
FASB will be proposing to measure assets at full fair value.
Sir David said there could be a means to reconcile FASB’s and the IASB’s
“Say we both stick to our same positions [on classification and measurement],
maybe we need to put out something that would say ‘if you want to get the same
other comprehensive income as FASB, you have to add this on, which would be the
fair value’” he said. “FASB would do the opposite. If you want to get the FRS
number, you deduct this. There are ways to do it.”
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