Robert Herz, chairman of the Financial Accounting Standards Board, has said he is in favor of a single set of global accounting standards.
Efforts have been underway to converge U.S. generally accepted accounting principles with international financial reporting standards. Speaking at a conference sponsored by Financial Executives International, Herz said, "I would not be in favor of a U.S. version of IFRS. I'm in favor of getting to a high-quality, single set of standards," according to Thomson Tax & Accounting's Accounting and Compliance Alert.
Herz warned about the possibility of political interference getting in the way, especially from businesses that want to see exceptions preserved in GAAP.
He pointed out that changes in the Tax Code might be needed to offset the extra expense of stopping the use of last-in, first-out accounting for inventory under GAAP, which is not allowed under IFRS. Other obstacles would be the treatment of leases, as well as pensions, revenue recognition and the presentation of financial statements.
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