3rd June 2010:
Welcome developments
In my blog posted this morning (but written yesterday) I said that I hoped the SEC would make a statement, in response to reports that the IASB/FASB convergence projects might be completed later than the anticipated 30 June 2011 deadline, making it clear that this would not affect its decision in 2011 about whether US domestic companies should be required to adopt IFRS. It is pleasing to see that Mary Shapiro, the Chair of the SEC, has done just that. In fact, she has gone further by welcoming a statement issued jointly by the IASB and FASB that outlines key aspects of their modified approach, in particular the additional time that will be given to stakeholders to consider the Boards’ proposals and give feedback.The accounting standard setters have noted in their joint statement that stakeholders have expressed concern that the large number of exposure drafts scheduled for publication by 30 June 2010 would make it difficult for them to respond in an appropriately considered way. While that is true, I suspect that the standard setters themselves may also have found the workload quite challenging. Whatever the reasons, it is right to have taken action to limit the number of exposure drafts issued on significant or complex topics to four in any one quarter; this remains a substantial volume but it is manageable. The prioritisation on issues that have the most substantial effect on enhancing the quality of accounting standards, and on the convergence of US GAAP and IFRS, also makes sense as does the proposed consultation on effective dates and transitional arrangements for the new standards.
So, welcome developments which I support, but we should bear in mind that the IASB/FASB convergence work plan remains ambitious and includes a number of projects that will be controversial. The modified strategy, as outlined in the Boards’ statement, will remove some of the pressure but we are still moving at a quite considerable pace.
Standards & Regulators 
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June 3rd, 2010