FASB Chairman Comments on Possible International Accounting Group
In an effort to boost the organization’s outreach to foreign standard-setters, Financial Accounting Standards Board (“FASB”) chairman Russell Golden has announced plans to create an informal network of accounting bodies. At the American Institute of Certified Public Accountants’ National Conference on Banks and Savings Institutions last week, Golden said the international group would acknowledge the International Accounting Standards Board’s (“IASB”) one size fits all approach is not conducive to ongoing U.S. GAAP and International Financial Reporting Standards (IFRS) convergence efforts, and differences among accounting standards will continue to occur.
Hoping to hold the first meeting by year’s end, the network would be independent from the IASB-created Accounting Standards Advisory Forum (“ASAF”), which features representatives from international standard-setters in Europe, Asia-Oceania, North and South America, and Africa. Additionally, according to Golden, the international group would encourage common understanding of financial accounting and reporting matters, help identify cultural, legal and political issues in varying countries, and partially act as a replacement for international convergence. Golden also remarked the international group should be able to assist FASB and IASB in undertaking other projects.
Golden has invited the IASB to join the group, but a spokesman with the international standard-setter declined to comment on his remarks from last week.