The World According To GAAP (Or IFRS?)

Jun 10th 2010
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Last week, the Financial Accounting Standards Board and the International Accounting Standards Board released a joint statement announcing a modification to the convergence timetable established under the FASB-IASB Memorandum of Understanding (MoU), last updated in November '09.

The modification will extend the timetable for some of the major convergence projects, originally slated to be completed by June, 2011.

Letter Sent To G-20 Finance Ministers
You may recall that in September, 2009, the G-20 Leaders (emphasis: G-20 Leaders, not the finance ministers) requested:

"We call on our international accounting bodies to redouble their efforts to achieve a single set of high quality, global accounting standards within the context of their independent standard setting process; and complete their convergence project by June 2011." (source: G-20 Progress Report, Sept. 25, 2009, as described here.)

Concurrent with issuing their joint statement modifying their convergence MoU last week, FASB and IASB also issued a letter to the Minister of Finance of the Republic of Korea, host of the June 4-5 G-20 Finance Ministers meeting, asking that the joint statement be shared with the other finance ministers.

FASB and the IASB explained in their Joint Statement last week:


“As noted in our March 2010 progress report, we recognize the challenges that arise from seeking effective global stakeholder engagement on a large number of projects. Since publishing the March progress report, stakeholders have voiced concerns about their ability to provide high-quality input on the large number of major Exposure Drafts planned for publication in the second quarter of
this year

Among letters provided by “stakeholders” were two letters sent by FEI Committees, the Committee on Corporate Reporting (CCR letter) and the Committee on Private Company Standards (CPC-S letter). Additional letters can be found here.

SEC Chairman: No Impact On SEC's Timetable for Decision in 2011 on IFRS
In a statement issued on June 2, SEC Chairman Mary Shapiro emphasized the quality and independence of the standard-setting process, in stating:

"Quality financial reporting standards established through an independent process are threshold criteria against which the Commission's future consideration of the role of IFRS in the U.S. reporting system will be based," adding,

"I am confident that we continue to be on schedule for a Commission determination in 2011 about whether to incorporate IFRS into the financial reporting system for U.S. issuers."

Developments in Private Company GAAP - and Free Webcast June 22 from Grant Thornton and FEI
For news about recent developments in private company GAAP - and how to register for a free webcast taking place on June 22nd, from 1-2:30 pm EST (1.5 CPE) cosponsored by Grant Thornton and FEI, click here.


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