IASB Set to Release New Rules

The International Accounting Standards Board (IASB) was expected yesterday to release its final set of rules, which public companies in the European Union and other countries will be required to follow starting next year, the Wall Street Journal reported.

The rules come despite a continuing dispute between the IASB and the European Union about how rules governing how banks and insurers account for complex financial instruments, the Journal reported. IASB would require the instruments to be valued at current market prices or fair value on company balance sheets. The EU fears this would case volatility in bank and insurance company financial results.

IASB Chairman David Tweedie predicts the issue will be resolved by the end of the year.

"It is progress that [the IASB] has recognized the need to continue discussions on the outstanding issues," Jonathan Todd, a spokesman for Frits Bolkestein, the European commissioner for internal markets who has led the EU's opposition to the new standards as they now stand, told the Journal.

More than 90 countries plan to require or allow companies to use the new international standards next year, but U.S. companies are still following U.S. rules. IASB and FASB are working to one day create a single set of rules that investors and companies around the world can use.

The IASB standards set for publication this week include a rule that keeps companies from using an accounting technique known as "pooling of interests," which treats acquisitions as a merger of equals, the Journal reported. This technique is no longer allowed by the U.S.

Companies will also no longer be allowed to amortize goodwill, which is the difference between an asset’s book value and what the company paid for it, the Journal reported. The IASB is also expected to set up two international working parties to hammer out the differences that remain with the EU in regards to some of the proposed rules.

You may like these other stories...

By Jason BramwellThe IRS on August 19 unveiled a new online registration system for financial institutions that need to register with the agency under the Foreign Account Tax Compliance Act (FATCA).Financial institutions...
By Curtis C. Verschoor, CMAThe furor over the extensive tax avoidance measures used by technology companies such as Google and Apple has reached new heights in both the United Kingdom and the United States. Government...
By Jason Bramwell Government leaders of eight of the world's largest economies pledged on June 18 to take a tougher stance on fighting tax evasion. The Group of Eight (G8) leaders, who met in Northern Ireland,...

Already a member? log in here.

Upcoming CPE Webinars

Sep 24
In this jam-packed presentation Excel expert David Ringstrom, CPA will give you a crash-course in creating spreadsheet-based dashboards. A dashboard condenses large amounts of data into a compact space, yet enables the end user to easily drill down into details when warranted.
Sep 30
This webcast will include discussions of important issues in SSARS No. 19 and the current status of proposed changes by the Accounting and Review Services Committee in these statements.
Oct 21
Kristen Rampe will share how to speak and write more effectively by understanding your own and your audience's communication style.
Oct 23
Amber Setter will show the value of leadership assessments as tools for individual and organizational leadership development initiatives.