IASB chief claims fair value options can be reconciled

IASB chief claims fair value options can be reconciled

"There are ways to do it" Tweedie claims.

The head of International Accounting Standards Board (IASB) believes an
impasse on the fair value accounting rule can be reconciled,
the
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
numbers.

“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.”

Further reading:

IASB
Chairman Outlines Approach for Reconciling Financial Instrument Standards

IASB-FASB
take baby steps towards fair value

Share

Subscribe to get your daily business insights

Resources & Whitepapers

Why Professional Services Firms Should Ditch Folders and Embrace Metadata
Professional Services

Why Professional Services Firms Should Ditch Folders and Embrace Metadata

3y

Why Professional Services Firms Should Ditch Folde...

In the past decade, the professional services industry has transformed significantly. Digital disruptions, increased competition, and changing market ...

View resource
2 Vital keys to Remaining Competitive for Professional Services Firms

2 Vital keys to Remaining Competitive for Professional Services Firms

3y

2 Vital keys to Remaining Competitive for Professi...

In recent months, professional services firms are facing more pressure than ever to deliver value to clients. Often, clients look at the firms own inf...

View resource
Turn Accounts Payable into a value-engine
Accounting Firms

Turn Accounts Payable into a value-engine

3y

Turn Accounts Payable into a value-engine

In a world of instant results and automated workloads, the potential for AP to drive insights and transform results is enormous. But, if you’re still ...

View resource
Digital Links: A guide to MTD in 2021
Making Tax Digital

Digital Links: A guide to MTD in 2021

3y

Digital Links: A guide to MTD in 2021

The first phase of Making Tax Digital (MTD) saw the requirement for the digital submission of the VAT Return using compliant software. That’s now behi...

View resource