Hoogervorst Shares View on IFRS, Leases, Accounting and Future Activities
Hans Hoogervorst, Chairman of the International Accounting Standards Board has recently given a lecture on a number of accounting related issues at the London School of Economics. Addressing the students and public in general Hoogervrost broadly discussed the challenges that are affecting some of the projects of IASB like leases, accountability related arrangements and global IFRS adoption. In his speech Hoogervrost covered a range of topics, many of which were similar to the topics discussed during a meeting with the European Parliament Committee on Economic and Monetary Affairs organized on the 5th November.
Sharing his view on leases project, Hoogervrost emphasized on the issues and challenges that lease related project is facing. One of the issues is that that some of the leases related contracts are not being registered in the balance sheet, despite the fact that they contain a number of financing elements. Hoogervrost mentioned that efforts pertaining to lobbying are being made in this direction, in addition to claims (being made in the U.S.) that leasing on balance sheet is going to result in loss of 190,000 jobs in America alone. Hoogervrost also shared that IASB requires help to make sure that they don’t get lobbied off course.
On matters pertaining to adopting International Financial Reporting Standards globally, Hoogervrost pointed out the importance of IFRS in global financial markets. He mentioned that official letters issued by G20 also reveal that they support the International Accounting Standards Board and are in favor of global IFRS adoption.
Hoogervrost also clarified in his speech, that US should consider adopting IFRS as soon as possible and also hoped that the nation would do the same by the year 2013 comes to an end.
On matters pertaining to Accountability, Hooervorst stated the manner in which the IFRS Foundation was looking to make efforts to become more responsive and inclusive to constituents. He also noted that the FASB and IASB arrangement will come to an end soon and instead a new arrangement via the proposed ASAF (Accounting Standards Advisory Forum) would replace it. Hoogervorst also expressed disappointment on the manner in which FASB-IASB arrangement came to an end and shared his views on the future activities of the IASB.
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