Uncertainty Surrounds Adoption of Global Accounting Rules
A leading board member for the International Accounting Standards Board recently indicated that there is much uncertainty as to whether the US will adopt global accounting rules, which could jeopardize the IASB as a whole.
During the recent IASB trustee meeting, Padio Schioppa stated, “The aspiration of having global standards depends very much on the adoption of global standards by the United States and this is highly uncertain and may still give us a big disappointment in a year or so from now.”
The Financial Accounting Standards Board (FASB) is working to sync their accounting rules with those set forth by the IASB. However, the two groups are struggling to come to an agreement on some of the key concepts their differing financial reporting guidelines.
Additionally, the SEC is considering the impact of adopting international standards and many US corporations object to the change due to the high cost of adopting a new set of standards and procedures.
For more information on International Financial Reporting Standards or other international accounting matters, contact Tom Breedlove.