SEC WARNED AGAINST CONDORSEMENT APPROACH
New York - The head of a British accounting group has warned the SEC and the Financial Accounting Standards Board against pursuing a so-called condorsement approach to International Financial Reporting Standards.
Dr. Nigel Sleigh-Johnson, head of the Financial Reporting Faculty at the Institute of Chartered Accountants in England and Wales, said the condorsement approach is "fraught with risks and drawbacks." He noted that a mandatory transition date for IFRS worked better in the U.K. for public companies, and a gradual approach for private companies had proven to be problematic.
Condorsement, a combination of convergence and endorsement, would allow FASB to endorse IFRS one standard at a time into U.S. GAAP. The SEC is expected to decide before the end of the year whether to move forward with incorporating IFRS into the U.S. financial reporting system.
By contrast, FASB chair Leslie Seidman gave a cautious thumbs-up to the condorsement approach, while defending FASB's authority over private company accounting standards.
U.S., HONG KONG SIGN CPA RECOGNITION PACT
New York - U.S. and Hong Kong accounting organizations have inked a five-year mutual recognition agreement that would allow reciprocity between U.S. and Hong Kong CPAs.
The deal, announced at the annual meeting of the National Association of State Boards of Accountancy, would eventually allow accountants to work in both the U.S. and Hong Kong, subject to approval by state boards of accountancy.
The agreement - which will streamline the process for qualified professionals with accounting credentials to become certified and licensed in each other's countries - is between the U.S. International Qualifications Appraisal Board and the Hong Kong Institute of CPAs. It has been recommended to the boards of accountancy in all 55 U.S. jurisdictions for their adoption.
