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IASB Chairman Asks G20 Task Force To Turn Up Their Hearing Aids

Posted on by Caleb Newquist

Accounting rule convergence is dead. I know it. You know it. Hans Hoogervorst knows it. Everyone has accepted the fact that the SEC managed to tell IFRS supporters to stick their principles-based rules where the sun don't shine in the most passive-aggressive way possible. Yes, the IASB is still coming up with pathetic ideas to convince holdouts that they're the coolest gang of double-entry wizards around, but, really, they know it's over.

On Monday, however, we learned that the G20's Financial Stability Board is still holding on to false hope like Allan West:
"The FSB reiterates the benefits of a timely completion of convergence and considers it important that the convergence programme not lose momentum in other areas," FSB chairman Mark Carney told G20 finance ministers meeting in Mexico on Monday. "The FSB will request by no later than end June 2013 a joint IASB-FASB report on all outstanding items with a specific timetable for completion," Carney, also Bank of Canada governor, said.
IASB Chairman Hans Hoogervorst managed to withstand an aneurysm and reiterated to The Accountant that complete convergence is like The Flying Dutchman: 
Hoogersvost told The Accountant the IASB will continue to work in close cooperation with the FASB on the remaining convergence projects such as financial instruments, revenue recognition and leases but that once this work is complete “convergence will come to an end”. “I support the FSB’s call to complete these remaining projects on a timely basis. Leslie [Seidman, FSB (sic) chairman] and I have already said in public that once this work is complete, convergence will come to an end. Instead, we will work with the US on a multilateral basis,” Hoogersvost said.

Hopefully everyone's on the same page now.

Hoogervorst: IFRS unstoppable, US to make its choice [The Accountant via Matt Kelly]

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Hans Hoogervorst Doesn’t Want the U.S. to Worry Its Pretty Little Head About Losing Influence Over Accounting Rulemaking

Hoogervorst said U.S. sovereignty would be protected by the SEC having a final say before any IASB rule is introduced. “Such endorsement mechanisms provide an important ‘circuit breaker’ if the IASB produced a standard with fundamental problems for the United States,” Hoogervorst told an accounting conference. The SEC would remain in full control of enforcement. “So there is absolutely no danger of importing different enforcement standards from abroad into the United States,” the former Dutch finance minister added. [Reuters]

Japan Getting Cold Feet on IFRS

On the day of Sir David Tweedie’s retirement, no less.

The Journal reports:

Japan is considering postponing the mandatory introduction of global accounting standards for all listed companies beyond the original target date of 2015, amid strong opposition to the change from the country’s business community. Japan’s financial services minister, Shozaburo Jimi, said Thursday at a Business Accounting Council meeting, hosted by the Financial Services Agency, that making Japanese companies adopt the rule—known as the International Financial Reporting Standard—within a few years could be a big burden and costly for businesses. “If Japanese firms are required to move to IFRS, we will need enough time, five to seven years, for preparation,” Mr. Jimi said, adding that discussions over the matter will take time.

Japan May Delay Accounting Shift [WSJ]