IASB gives "no guarantee" of full US accounting convergence
IASB and FASB release joint statement on progress
The International Accounting Standard Board (IASB) and its US counterpart say there are “no guarantees” they can resolve their differences on key proposals raised in the wake of the global crisis.
The IASB and the US Financial Accounting Standards Board released a joint statement earlier today outlining their progress towards the June 2011 convergence deadline of their two codes.
The board said while they are attempting to reconcile their two approaches on financial instruments – which played a key part in the unraveling of bank finances in the late stages of 2008 – they still hold “differing conclusions on a number of important technical issues”.
“Although our recent experiences with joint meetings show that we have been able to resolve differences on several projects, there is no guarantee we will be able to resolve all, or any, of our differences on this project,” the pair said in a statement.
The boards blame “different imperatives” and timetables for the differences, but say they will jointly consider each other’s proposals and feedback during the next few months and issue new requirements by March 2011.
In the past, the IASB has indicated it would release bridging guidance, to achieve some level of compatibility with differing US requirements, if full convergence is not achieved.
The US financial regulator, the Securities and Exchanges Commission is still deciding whether it will adopt international accounting rules, and is currently assessing the impact. It said it will reach a final decision by 2011.
Read the full IASB-FASB statement: IASB and FASB quarterly report shows continued progress towards convergence goal
Further reading: Europe’s IASB concerns voiced at global meeting
