IASB Practically Begging the U.S. to Join Its New Accounting Standards Advisory Forum Now

Posted on by Caleb Newquist

No underwear? How about socks and shoes?Back in November the IASB came up with the idea to start a new cool club called the Accounting Standards Advisory Forum. It was going to include 12 elite members of accounting rule wonkery that would be at the forefront of global financial reporting. There was one major to joining the ASAF, however, and that was that the dozen members would have to "sign up to promoting a single set of global standards – code for no lobbying for national carve-outs – and respect the IASB's independence." 

The "single set of global standards" was commonly understood to be IFRS, but after hearing from interested parties that weren't necessarily hip to the idea, the IASB had a change of heart about that position, explaining that all the dozen members had to do was "agree to support and contribute to the foundation in its mission to develop a single set of high-quality, understandable, enforceable and globally accepted financial reporting standards." Standards that were, presumably, to be named later. "New IFRS" or IFRS Zero" or something.

But now, here we are, about three weeks later and the IASB has gone full on desperate, handing the U.S. a seat on the new ASAF:

IASB Chairman Hans Hoogervorst said on Monday membership rules will be changed by the time the new panel holds its first meeting in April so the world's biggest capital market can join. Michel Prada, chairman of the IASB's trustees, who will select panel members, said: "We very much hope our U.S. friends will join. We obviously need their contribution."
Oh? No more of this "It is also becoming more difficult to justify the representation of jurisdictions not applying IFRS in the IASB governance framework" talk? 
"Now we are in a sort of situation people are waiting and wondering what's next," Prada said. "The message we have to convey to our U.S. counterparts is that they have to help us get out of this situation and find a new way forward."
Well then. Maybe they'll think about it.
 

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Retired IASB Member Calls IFRS Compliance “A Must” for G20 Nations

Now, let’s keep in mind he said this at an “IFRS and Emerging Market” meeting in Lagos, and meant it in regards to African companies.


Retired IASB board member Bob Garnett said for any country seeking membership of G20, becoming IFRS compliant is a must. He also said African companies will need to work together in regional groups to have more weight as they will not gain necessary influence on their own because they do not have the IFRS track record yet.

The pre-workshop meeting at which Garnett made these comments was organized by Ernst and Young (“a leading voice in IFRS converstion,” according to Nigerian publication The Nation).

Remember it was only days ago that the IASB’s fearless fish-loving leader Hans Hoogervorst was in Boston assuring U.S. regulators they’d have a say in IFRS rules if they’d just hurry up and adopt already. No mention was made about kicking us out of G20 if we don’t embrace IFRS fully and soon.

Anyone else smelling the distinct aroma of desperation?

Also last week at the Boston conference, AICPA CEO Barry Melancon said the SEC should allow U.S. companies to use IFRS if they want “to level the playing field with their international competitors.”

IFRS cheerleading sessions are taking place all around the world at this point, and it’s only a matter of time before the SEC will finally be forced to commit to a plan and adopt. Or else?