The International Accounting Standards Board
(IASB) and Financial Accounting Standards Board (FASB) are delaying
to completion dates of the revenue recognition, leasing, financial
instruments and insurance projects by a few months.
This means that some of the more complex and
contentious standards will not be completed by the end of this
year, which was already an extension on the original June 2011
deadline.
Chairman of the FASB Leslie Seidman said
the June 2011 date was only a “target” and not a firm deadline. The
standard setters said more time is needed to incorporate the
feedback they had received on the exposure drafts of the converged
standards.
“Our due process is designed to be open,
inclusive and deliberate and we want our stakeholders to be active
participants in the process, so let me clarify any misunderstanding
about the June 2011 date. It was always intended to be a target,
not a deadline”, Seidman said.
Financial reporting stakeholders have
previously complained the complex standards were being rushed
through too quickly and expressed fears this could lead to a poorer
quality end product. In response to these fears, Seidman said
“ample” time will be allotted for everyone to understand
requirements and to plan for effective transition to the new
standards.
There has also been a leasing industry
backlash against controversial changes in the leasing proposals,
which radically alters the way assets are accounted for.
How well do you really know your competitors?
Access the most comprehensive Company Profiles on the market, powered by GlobalData. Save hours of research. Gain competitive edge.
Thank you!
Your download email will arrive shortly
Not ready to buy yet? Download a free sample
We are confident about the unique quality of our Company Profiles. However, we want you to make the most beneficial decision for your business, so we offer a free sample that you can download by submitting the below form
By GlobalData“We have decided to extend the timetable for a
few additional months to enable us to check whether our conclusions
will last the test of time”, Tweedie said.
“We are also mindful of the G20 target, we
have been reminded of that many times over the last few years, and
we intend to try to finish this convergence programme by end of
2011. The June target has helped us to get there but at the same
time it is clear that we need a little more time to check the
conclusions, and to ensure that the standards are of the highest
quality”, he added.
