Efforts between the Financial Accounting Standards Board and the International Accounting Standards Board at converging U.S. GAAP with International Financial Reporting Standards are starting to generate a backlash on the other side of the Atlantic.
As the convergence effort grinds on with now monthly meetings between FASB and the IASB, fundamental differences remain over many issues, including how to account for soured bank loans, whether at fair value, as FASB prefers, or on an amortized cost basis, as the IASB has proposed.
In an illuminating update on how the outlook seems to be evolving in Europe on the convergence process, U.K.-based
Even outside Europe, other governments want more of a say in shaping IFRS. Japan recently began allowing companies to voluntarily use IFRS, but it has pressed the IASB to make changes in how banks can value bonds they do not plan to sell, according to a
Nevertheless, FASB and the IASB have redoubled their efforts since November to meet the goal of converging on most major outstanding issues by June 2011. Its up to the SEC to decide on whether to approve the proposed IFRS roadmap, and that decision is expected soon.