Wholesale adoption in the U.S. of International Financial Reporting Standards seems unlikely to occur in the near future as the Financial Accounting Standards Board and the International Accounting Standards Board continue to move away from full convergence of their standards, according to a Fitch Ratings report.
Three joint FASB and IASB projects remain outstanding—financial instruments, insurance and leasing, Fitch noted. Differences in financial products between U.S. institutions and those following IFRS, along with varying approaches in application, mean that a one-size-fits-all accounting approach for financial instruments are problematic. In addition, on the insurance standards, U.S. constituents have raised a number of concerns, including that the proposal would ensnare both insurance and non-insuring issuers. These considerations resulted in the joint insurance project also falling by the wayside.
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