NEWS RELEASE 04/21/11
IASB and FASB Report Substantial Progress Towards Completion of Convergence
Program
Norwalk, CT, April 21, 2011—The International
Accounting Standards Board (IASB) and the US-based Financial Accounting
Standards Board (FASB) today published a progress report on their joint work to
improve International Financial Reporting Standards (IFRSs) and US generally
accepted accounting practices, and to bring about their
convergence.
Since their report last November, the boards have;
- Completed five projects: In the next few weeks the IASB
will issue new standards on consolidated financial statements (including
disclosure of interests in other entities), joint arrangements and
post-employment benefits and both boards will issue new requirements in
relation to fair value measurement and the presentation of other comprehensive
income.
- Given priority to the three remaining MoU projects, as well as
insurance accounting: The Boards have made substantial progress
towards completion of the three remaining MoU projects covering financial
instruments accounting, leasing and revenue recognition, as well as their
joint project to improve and align US and international insurance accounting
standards.
- Provided for further time to finalise their convergence
work: The boards have agreed to extend the timetable for the
remaining priority convergence projects beyond June 2011 to permit further
work and consultation with stakeholders in a manner consistent with an open
and inclusive due process. The convergence projects are targeted for
completion in the second half of 2011 (however, the U.S. insurance standard,
which has not yet been exposed, is targeted for the first half of 2012).
The progress report provides further details on the timeline for the
completion of the remaining projects, and is available to download from the IASB
and FASB websites.
Commenting on the progress report, Sir David Tweedie,
Chairman of the IASB said:
Today we are reporting further substantial
progress on our work to improve and align international and US accounting
standards, while providing additional time to finalise the remaining convergence
projects.
The convergence program continues to raise the standard of
financial reporting worldwide, delivering much-needed improvements in key areas
and providing a solid platform for global high quality
standards.
Leslie F. Seidman, Chairman of the FASB, said:
The progress report highlights the many areas
where we have already improved and converged our standards, and our plans for
completion of the priority projects. We have also clarified our plan to continue
to engage stakeholders in the remaining steps of the process, and give them an
opportunity to review the draft standards before they are
finalized.
Press enquiries:
Neal McGarity,
Director of Communications, Financial Accounting Foundation
Telephone: (+1)
203 956-5347
Email: nemcgarity@f-a-f.org
Mark
Byatt, Director of Communications, IFRS Foundation
Telephone: +44 (0)20 7246
6472
Email: mbyatt@ifrs.org
Notes to editors
About
the FASB
Since 1973, the Financial Accounting Standards
Board has been the designated organization in the private sector for
establishing standards of financial accounting and reporting. Those standards
govern the preparation of financial reports and are officially recognized as
authoritative by the Securities and Exchange Commission and the American
Institute of Certified Public Accountants. Such standards are essential to the
efficient functioning of the economy because investors, creditors, auditors, and
others rely on credible, transparent, and comparable financial information. For
more information about the FASB, visit our website at www.fasb.org.
About
the IASB
The IASB was established in 2001 and is the
standard-setting body of the IFRS Foundation, an independent, private sector,
not-for-profit organisation. The IASB is committed to developing, in the public
interest, a single set of high quality global accounting standards that provide
high quality transparent and comparable information in general purpose financial
statements. In pursuit of this objective the IASB conducts extensive public
consultations and seeks the co-operation of international and national bodies
around the world. The IASB currently has 15 full-time members drawn from 11
countries and a variety of professional backgrounds. By 2012 the Board will be
expanded to 16 members. Board members are appointed by and accountable to the
Trustees of the IFRS Foundation, who are required to select the best available
combination of technical expertise and diversity of international business and
market experience. In their work the Trustees are accountable to a Monitoring
Board of public authorities.