The American Bankers Association has released a letter and white paper raising concerns over the process taken by the Financial Accounting Standards Board and the International Accounting Standards Board in their financial instruments projects.
What the accounting boards are discussing now would be the biggest accounting change weve ever seen, said ABA senior vice president Donna Fisher. We are deeply concerned that the shortcuts being taken will result in flawed or inconsistent rules.
The ABA expressed concern that the standard-setting process is being compromised, partly because the IASBs timeline for completion may not allow U.S. companies to have a chance for appropriate due process in providing input.
If the IASB finalizes its rule on accounting for loans and debt securities prior to FASB finalizing its rule, FASB will have to adopt the IASBs rules or adopt a different rule which would result in divergence between U.S. GAAP and international rules, the white paper stated. The goal should be improving the current accounting rules that are in need of repair within a time frame that provides for due process and strives for international convergence.
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