IASB and FASB Chairs Hold Discussions on IFRS Adoption and Accounting Standards
Leslie Seidman, Chairman of the Financial Accounting Standards Board and Hans Hoogervorst, Chairman of the International Accounting Standards Board recently held discussions on accounting principles/standards that should be followed globally and IFRS’s future in United States and across the globe, at the AICPA National Conference on existing PCAOB and SEC developments 2012.
Seidman clarified that she was sharing her own views and not the views of the Financial Accounting Standards Board or Financial Accounting Foundation, at the time of addressing the issues. Seidman threw light on the unique requirements of the stakeholders in United States and stated that short time period as well as strong regulations need unambiguous and clear standards. She was of the opinion that their system could not function for a long time using just the broad standards/principles.
Addressing the matter of convergence, Seidman pointed out that an aim of 100% comparability is difficult to achieve in the coming months for obvious reasons. She also suggested that the IASB and FASB should first complete the Memorandum of Understanding projects and in future both the boards must continue holding discussions and seek opinions from other standard setting bodies to bring about improvements in accounting related standards and ensure that US Generally Accepted Accounting Principles, International Financial Reporting Standards and other accounting principles being followed globally become comparable. Seidman noted that the boards should adopt an approach, which is not very formal when it comes to convergence.
On the other hand, Hoogervorst stated that the International Financial Reporting Standard has successfully enjoyed a very strong impact globally for several years now and thus its (IFRS) success is no longer dependent on United States convergence. He further clarified that the International Accounting Standards Board as well as the entire world are waiting for the United States to state what it intends to do with regard to IFRS clearly.
Hoogervorst also stated that the existing position of United State that revolves around the requirement of more comparability between the principles/standard will not be sufficient. He pointed out that the entire world was expecting that the Securities and Exchange Commission would have arrived at a decision with regard to transitioning by this time. Hoogervorst also discussed and shared the outcome of the analysis conducted by the staff members of the IFRS Foundation that clarified that United States would successfully adopt IFRS.