IASB and FASB Coordinating on Dates for New Standards
The IASB (International Accounting Standards Board) and FASB (US Financial Accounting Standards Board) are consulting as to when to set the dates for the new financial reporting standards to be taking effect.
The new financial reporting standards had been decided on early this year to rectify the issues that were frequently cropping up on the large auditing scene.
The convergence of International Financial Reporting Standards and US GAAP is being looked forward to by the industry as a whole. As work goes on in order to get completed before the convergence, a number of major projects are due to be completed in 20111.
The boards are at present seeking views on whether or not to sequence the effective dates, and if yes, then how. This is being done with the view of reducing the burden on interested parties.
On its decision on how to proceed, the IASB has said that the needs of the jurisdictions that have already been using IFRS’s will be up for consideration. Also, those who have been planning to do so will be considered by the boards.
The boards will take feedback from consultation as they jointly develop an implementation plan for the new standards that have been aimed at helping stakeholders manage both the cost and pace of the change.
The projects that have been covered by the request for views have included the 2nd and 3rd phases of the Financial Instruments, Revenue from Contracts with Customers, Insurance Contracts and Leases. Comments have been requested to be sent by 31 January 2011.
The chairman of the IASB, Sir David Tweedie, has said that a number of IFRS’s will be published in the next “six to eight months”. He also mentioned that comments and views were welcome.