20, Accounting Changes, and FASB Statement No. On March 11, 2009, the FAF and FASB responded to the SEC’s request for comments on its proposed Roadmap. International convergence of accounting standards is not a new idea. Japan and China have also forged convergence plans with the IASB. That partnership is described in “The Norwalk Agreement,” issued after that joint meeting. The topics for discussion are as follows: The meeting agenda and agenda papers can be found on the meeting page. IFRS 2 requires an entity to recognise share-based payment transactions (such as granted shares, share options, or share appreciation rights) in its financial statements, including transactions with employees or other parties to be settled in cash, other assets, or equity instruments of the entity. Press enquiries: Mark Byatt, Director of Communications, IFRS Foundation Telephone: +44 (0)20 7246 6472 The Securities and Exchange Commission (SEC) consistently has supported convergence of global accounting standards. In 1999, the FASB published International Accounting Standard Setting: A Vision for the Future, describing its vision of the ideal international financial reporting system. In November 2008, the SEC published for public comment a proposed Roadmap to the possible use of IFRS by U.S. issuers beginning in 2014. requires lessees to recognise nearly all leases on the balance sheet which will reflect their right to use an asset for a period of time and the associated liability for payments. The 1970s saw the creation of the first international accounting standard-setting body and a gradual increase in voluntary cooperation among the FASB, the IASC, and other national standard setters. The changes issued today do not address which items should be presented in OCI or which and when … Summary of the new IFRS standards. Instead of trying to eliminate differences between standards that are in need of significant improvement, the Boards should develop a new common standard that improves the quality of financial information. The FASB today issued an Update to Topic 220: Presentation of Comprehensive Income that brings US GAAP into alignment with IFRSs for the presentation of OCI. The SEC also proposed that U.S. issuers meeting certain criteria be given the option of filing financial statements prepared using IFRS as issued by the IASB as early as years ending after December 15, 2009 (Proposed Roadmap). The U.S. is one of the remaining capital markets without an IFRS mandate, and there are no current plans to change. Nili Shah, IASB Technical Staff. The IASC and the International Organization of Securities Commissions (IOSCO, of which the SEC is a member) agreed on what constitutes a comprehensive set of core standards. The plan outlined specific efforts toward achieving that goal. At the end of the decade, the FASB directly participated in the working party that led efforts to restructure the IASC into the IASB. IFRS 9 to financial assets in the FVOCI measurement category. The American Institute of Certified Public Accountants (AICPA) hosted the 8th International Congress of Accountants. It also established broad tactics to achieve their goal: develop standards jointly, eliminate narrow differences whenever possible, and, once converged, stay converged (Norwalk Agreement). In late 2008, the SEC issued a proposed Roadmap that, if adopted, could result in the mandatory use of international standards by U.S. SEC registrants as early as 2014. Timeline. The EU subsequently decided to “carve-out” a portion of the international standard for financial instruments, producing a European version of IFRS. The AICPA, as the IASC member, coordinated U.S. involvement in IASC activities. International Accounting (New York: Macmillan, 1967) was the first textbook on international accounting. Head office: Columbus Building, 7 Westferry Circus, Canary Wharf, London E14 4HD, UK. An important element of the Financial Accounting Standards Board's move towards convergence of its standards with International Financial Reporting Standards is the development of the FASB Accounting Standards Codificatio™ (the "Codification"), which is expected to become authoritative on July 1, 2009. The report said that such a system would be characterized by a single set of high-quality accounting standards established by a single, independent, international standard setter. Further details will be published on both websites shortly. Directs the staff of the SEC to develop and execute a work plan (Work Plan) that transparently lays out specific areas and factors for the staff to consider before potentially transitioning our current financial reporting system for U.S. issuers to a system incorporating IFRS. ... [Applying IFRS Standards in 2020–impact of covid-19] at the IFRS Foundation’s conference in September 2020 Estimates The SEC issued a press release stating its intent to consider the acceptability of IASC standards as the basis for the financial reports of foreign private issuers. In 1995, the FASB updated its strategic plan for international activities, essentially affirming the strategic goals and action plans set forth in 1991. FASB board member Lawrence Smith said, "If I were a betting person, I would bet on some type of hybrid model being adopted." The Board’s first formal plan for international activities described the ultimate goal of internationalization as a body of superior international accounting standards that all countries accepted as GAAP for external financial reports. Expand. As of 2013, Japan and China were also working to converge their standards with IFRSs. GAAP vs. IFRS: An Overview . FASB Proposals to Expand Fair Value Draw Strong Opposition Reuters reports that comment letters express heavy opposition to FASB proposals to expand fair value. On November 7, 2007, the Financial Accounting Foundation (FAF) and the FASB responded to the SEC’s request for comments on its Concept Release (see above). (Comment Letter). New ... that the U.S. needs to continue its compliance with the SOX as part of the process of the convergence of the GAAP and IFRS standards. There was a remote joint IASB–FASB education meeting held on 19 November 2020. In 2001, the IASC was restructured into the IASB; and by 2009, the European Union and over 100 other countries had adopted international standards or a local variant of them. Pursuant to the Sarbanes-Oxley Act of 2002, the SEC issued a Policy Statement that reaffirmed the FASB as the private-sector accounting standard setter for the U.S. That policy statement also said that the SEC expects the FASB to consider, in adopting accounting principles, the extent to which international convergence of high-quality standards is necessary or appropriate in the public interest and for the protection of investors (Policy Statement). IFRS 12 spells out the information that needs to be disclosed in the notes to the financial statements about … The group was active for about 10 years, producing studies of differences in 20 areas of accounting that also included conclusions on best practices. © IFRS Foundation 2017. The FASB and the IASB have been working together since 2002 to improve and converge U.S. generally accepted accounting principles (GAAP) and IFRS. What happened in June? The joint revenue projectcommenced in 2002 and the key objectives of the project were to: 1. remove inconsistencies and weaknesses in existing revenue requirements; 2. provide a more robust framework for addressing revenue issues; 3. improve comparability of revenue recognition practices across entities, jurisdictions and capital markets; 4. provide more useful information to users of financial statements through improved disclosure requirements; and 5. simplify the preparation of financial statements by re… The Concept Release, International Accounting Standards, sought broad input on a framework for the convergence of accounting standards and sought input on the conditions under which the SEC should accept the financial statements of foreign private issuers prepared using IASC standards and eliminate the requirement to reconcile those financial statements to U.S. GAAP (Concept Release). The International Financial Reporting Standards Foundation is a not-for-profit corporation incorporated in the State of Delaware, United States of America, with the Delaware Division of Companies (file no: 3353113), and is registered as an overseas company in England and Wales (reg no: FC023235). One of those milestones was the continued progress of the IASB/FASB convergence program (Nicholiasen’s Speech). Until 2002, only a few countries decided to use IASC standards. In April 2005, SEC Chief Accountant Don Nicholiasen provided his views on a proposed “Roadmap” to eliminate by 2009 the requirement that foreign private issuers filing financial statements prepared under IFRSs reconcile reported net income and equity to U.S. GAAP (the 20-F reconciliation). The IASB published IFRS 16 Leases in January 2016 with an effective date of 1 January 2019. IFRS 10 provides requirements for the preparation of group, or consolidated, financial statements. Publication: Use of IFRS Standards around the world [PDF], How the IFRS Interpretations Committee helps support consistent application, Supporting materials for the IFRS for SMEs Standard, November 2020 IASB Update and IASB–FASB joint meeting published and work plan updated, Disclosure Initiative—Subsidiaries that are SMEs, Post-implementation Reviews of IFRS 10, IFRS 11 and IFRS 12. FASB | IASB Joint Education Meeting IASB Agenda ref 32A FASB Agenda ref 32A Responding to the covid-19 crisis.