US GAAP and IFRS Convergence May Be Delayed Even More
- by Theresa Hickman
Yesterday, on March 10, the Financial Accounting Standards Board (FASB) met to discuss the changes in financial statement presentation.
Over the last six months, the FASB and IASB have been working feverishly to converge US GAAP and IFRS standards to meet the 2011 deadline. In March alone, the standards-setters met eight times. Many people fear that this accelerated pace is compromising the quality of the end product and that maybe they should slow down and do their due diligence.
According to WG&L Accounting & Compliance Alert Checkpoint 3/10/2010, (which requires a subscription to view the full article) "Some statement preparers and investors who advise the FASB believe that the process would be better served if it was slowed down so that more attention could be paid to quality."
"Should 2011 be looked at as a line in the sand?" asked Joan Amble, executive vice president and corporate comptroller for American Express Co. "We don't think that due process should be compromised for the due date," concurred Lewis Dulitz, vice president of accounting policies and research for medical products supplier Covidien plc.
I personally have mixed emotions about this. On one hand, I have been growing impatient with how slow the US has jumped on the IFRS band wagon. On the other hand, being the conservative that I am and knowing this convergence will be costly and disruptive to businesses, I would prefer to be safe than sorry and get it right the first time.
