FAF Letter on SEC Condorsement: Common Set of Standards More Practical Goal Than 'Single Set' For Foreseeable Future
In a comment letter filed with the SEC earlier today, FASB's overseer, the Financial Accounting Foundation, noted it has 'refined' its view on the path forward regarding reaching the goal of a set of global accounting standards, referring to the goal of a 'single set' of standards as still being a 'worthy' goal, but emphasising that, as a practical matter, moving toward a 'common set' of standards, with IFRS as the reference point, is a more practical goal 'for the foreseeable future."
Note: I talked about an apparent shift in collective references to global standards from a 'common set' - to 'one set' - and perhaps momentum back to a 'common set' - in the 'my two cents; section of a post on June 28, 2009, in which I said:
"[My two cents: In my view, references to the goal of convergence being a 'common set of standards' vs. a 'single set of have varied over time. While some may view the two terms as interchangable, I have noticed a movement from 'common set' to 'single set' in recent years; however, there may be a return to 'common set' in light of concerns voiced in some comment letters and news reports about the timetable proposed in the SEC's IFRS roadmap. Those referring to an ultimate 'single set' of standards generally note that given the widespread worldwide adoption of IFRS, as noted by FASB Chairman Herz in remarks at an FEI conference in September 2007, any such 'single set' of standards accepted globally would likely ultimately be an improved set of IFRS.]"
In today's letter to the SEC, the FAF acknowledges the concepts of the SEC's 'condorsement' approach, and recommends certain 'refinements.' The FAF letter also includes their thoughts on FASB's role in a post-MOU world (i.e., after FASB and the IASB complete the major convergence projects on their Memorandum of Understanding). Read highlights from the FAF's letter to FASB here.