ICAEW: US standards proposal complicates convergence

ICAEW: US standards proposal complicates convergence

Institute takes a pop at the US standards setter's proposal for fair value accounting

A proposal by the US accounting standards setter to use fair value for all
assets will increases complexity and complicate the strategy to converge with
international rules, claims the
ICAEW.

Dr Nigel Sleigh-Johnson, head of the ICAEW’s Financial Reporting Faculty,
said that
FASB’s
strict model for measuring financial instruments will make statements harder to
read and information more difficult to understand for investors.

“Simplification of the standards for financial instruments accounting is a
key priority, and is an objective endorsed by the G20 governments. The FASB’s
proposals are surely pulling in the wrong direction,” said Sleigh-Johnson.

The
IASB’s
model contains ‘mixed measurement’: which results in
financial instruments being stated at either amortised cost or fair value in the
primary financial statements (with fair values for all financial instruments
disclosed in the notes).

The ICAEW has been the most vocal accounting institute on the convergence
debate.
In
February
the ICAEW said the US Securities and Exchange Commission
had failed to provide certainty on US plans to adopt international standards.

Further reading:

It’s
time for the US to show some leadership on convergence: ICAEW

Whitepaper

The Future of Finance is in the CFO's Hands

Business The Future of Finance is in the CFO's Hands

4m
Save a Week a Month Consolidating Accounts

Accounting Software Save a Week a Month Consolidating Accounts

5m
Mitigating Risk Through Internal Control

Legal Mitigating Risk Through Internal Control

6m
Could tax season have run more efficiently?

Corporate Tax Could tax season have run more efficiently?

6m

Related Articles

IFRS to bring significant changes for lessee accounting

Accounting Standards IFRS to bring significant changes for lessee accounting

4w Dom Longley, lead consultant for accounting solutions for Smith & Williamson
Sustainable cost accounting - The reality of the climate crisis requires nothing less

Accounting Standards Sustainable cost accounting - The reality of the climate crisis requires nothing less

2m Richard Murphy
IFRS 17 is an “opportunity” for accountants

Accounting Standards IFRS 17 is an “opportunity” for accountants

2m Tom Lemmon
Moody’s Analytics enhances accounting and reinsurance capabilities of RiskIntegrity IFRS 17 solution

Accounting Standards Moody’s Analytics enhances accounting and reinsurance capabilities of RiskIntegrity IFRS 17 solution

2m Tom Lemmon
What will IFRS 16 mean for 2019’s reporting season?

Accounting Standards What will IFRS 16 mean for 2019’s reporting season?

3m John Kuett, Vice president of European Lease Accounting at Lease Accelerator
Top 10 lessons learnt on the road to FASB/IASB lease accounting compliance

Accounting Standards Top 10 lessons learnt on the road to FASB/IASB lease accounting compliance

4m Sponsored | Trimble
How to Manage FASB & IFRS Lease Accounting in a Sea of Changing Standards

Accounting Standards How to Manage FASB & IFRS Lease Accounting in a Sea of Changing Standards

6m Craig Gillespie
New IASB/FASB lease accounting standards: what happens after the dust settles?

Accounting Standards New IASB/FASB lease accounting standards: what happens after the dust settles?

9m Craig Gillespie