The International Accounting Standards Board (IASB) and the US-based Financial Accounting Standards Board (FASB) have published a progress report on their joint work to improve International Financial Reporting Standards (IFRSs) and U.S. generally accepted accounting principles, and to bring about their convergence.
Since their report last November, the boards have;
- Completed five projects: In the next few weeks the IASB will issue new standards on consolidated financial statements (including disclosure of interests in other entities), joint arrangements and post-employment benefits, and both boards will issue new requirements in relation to fair value measurement and the presentation of other comprehensive income.
- Given priority to the three remaining Memorandum of Understanding (MoU) projects, as well as insurance accounting: The Boards have made substantial progress towards completion of the three remaining MoU projects covering financial instruments accounting, leasing, and revenue recognition, as well as their joint project to improve and align U.S. and international insurance accounting standards.
- Provided for further time to finalize their convergence work: The boards have agreed to extend the timetable for the remaining priority convergence projects beyond June 2011 to permit further work and consultation with stakeholders in a manner consistent with an open and inclusive due process. The convergence projects are targeted for completion in the second half of 2011 (however, the U.S. insurance standard, which has not yet been exposed, is targeted for the first half of 2012).
The progress report provides further details on the timeline for the completion of the remaining projects, and is available to download from the IASB and FASB websites.
Commenting on the progress report, Sir David Tweedie, Chairman of the IASB said:
"Today we are reporting further substantial progress on our work to improve and align international and U.S. accounting standards, while providing additional time to finalise the remaining convergence projects.
"The convergence program continues to raise the standard of financial reporting worldwide, delivering much-needed improvements in key areas and providing a solid platform for global high quality standards."
Leslie F. Seidman, Chairman of the FASB, said:
"The progress report highlights the many areas where we have already improved and converged our standards and our plans for completion of the priority projects. We have also clarified our plan to continue to engage stakeholders in the remaining steps of the process, and give them an opportunity to review the draft standards before they are finalized."