Beswick's 'Condorsement,' Herz' 'Improve and Adopt'
'Condorsement,' a term coined by SEC Deputy Chief Accountant Paul Beswick in his speech at the Dec. 2010 AICPA Conference, referencing an approach somewhere "in between" ... "convergence or... endorsement" of International Financial Reporting Standards, forms the basis of the proposal floated for public comment in the SEC Staff Paper on IFRS released on Friday.
Interestingly, the term 'condorsement' was used only once in that paper, and personally (now would be a good time to remind you of the disclaimer posted on the right side of this blog) I believe the term 'condorsement' was used sparingly because the SEC staff wanted to emphasize the sovereignty factor, and attention-to-high-quality factor, presumably subsumed under the proposed approach of Endorsement (ongoing Endorsement of IFRS by the FASB for use in the U.S.) prior to Incorporation of IFRS into U.S. GAAP, the central message of the staff paper. Thus, the emphasis was on thoughtful, paced Endorsement, potentially subduing some of the criticism (such as that of Albrecht & Selling) pointed at the Convergence half of the Con-dorsement equation, particularly as relate to a 'big-bang' type of wholesale movement to IFRS - something the SEC will continue to obtain feedback on, at its upcoming (July 7) roundtable on IFRS.
On the subject of Condorsement, one thing I find fascinating is the extent to which former FASB Chairman Bob Herz' 'Improve and Adopt' approach - first introduced in his testimony at a Senate Banking Committee, Securities Subcommittee hearing on Oct. 24, 2007 can be viewed as a possible precursor to Beswick's "Condorsement." Read more details here.