RegulationAccounting StandardsZalm: Our convergence commitment has not changed

Zalm: Our convergence commitment has not changed

Body dismisses suggestions its commitment to convergence is wavering

Gerrit-zalm

The international accounting rule makers said it remains focused on convergence with US accounting standards.

In a letter to the Financial Times newspaper, Gerrit Zalm, chairman of the trustees,
at the International Accounting Standards Committee Foundation (IASC), which oversees the work of the International Accounting Standards Board (IASB), responded to a report which suggested the body was softening its stance towards American convergence.

“Nothing could be further from the truth,” Zalm said in his letter.

“The trustees of the IASC Foundation strongly support the work plan that the IASB has established with the US Financial Accounting Standards Board (FASB), which will reduce the differences between, and improve, (international standards) and US standards.”

He said convergence remained an important stepping stone on the path towards US adoption of international standards.

The IASCF announced nine amendments to the IASB’s constitution on Monday, including a renewed emphasis on the promotion of international accounting rules.

In the announcement, convergence with US accounting rules was described as “not an objective by itself”.

The IASB has been working feverishly with its US counterpart, the Financial Accounting Standards Board, to harmonise their two accounting languages with a view to arrive at full convergence by 2011.

Yesterday, the two boards met, via video link, to discuss revenue recognition among a range of topics.

Read the letter: Convergence plan will ‘facilitate’ possible IFRS adoption

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