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Europe Finally Resorts to Making Empty Threats Over U.S. Stalling on IFRS

Posted on by Caleb Newquist

The foot-dragging by the SEC over IFRS is a sight to behold. At some point in time – the Triassic Period, or thereabouts – the G20 requested "key global accounting standards bodies [to] work intensively toward the objective of creating a single high-quality global standard." And yet on Friday, the SEC served up a steaming pile of jack squat much to the chagrin of IFRS enthusiasts everywhere. Somehow, someway, the SEC has managed to eloquently avoid making a decision on the matter. It's really quite an impressive feat of international politicking. 

Well, the Europeans have HAD IT. Up until now, they've mostly been nice about things but this latest non-response response has really gotten their knickers in a twist, so much so that European Commission flacks are starting to chime in: 

"The lack of a clear vision from the U.S. creates uncertainty and hampers the IFRS from becoming a truly global accounting language," said [European Commission spokesman Stefaan] De Rynck, who speaks on behalf of Michel Barnier, the EU commissioner responsible for financial services. "It is also becoming more difficult to justify the representation of jurisdictions not applying IFRS in the IASB governance framework," he added in remarks seen as taking a swipe at the United States.
We'll just assume that this De Rynck fellow has just gone off the reservation a bit and this is utter nonsense. Nobody puts FASB in the corner.
 

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• Completed five projects: In the next few weeks the IASB will issue new standards on consolidated financial statements (including disclosure of interests in other entities), joint arrangements and post-employment benefits and both boards will issue new requirements in relation to fair value measurement and the presentation of other comprehensive income.

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Wait a second, did they really say that putting off more convergence work is an accomplishment? That’s our kind of work right there. IASB Chair Sir David Tweedie and FASB Chair Leslie Seidman didn’t let that little detail deter them from patting themselves on the back for a job well done. Said Sir David, “the convergence programme continues to raise the standard of financial reporting worldwide, delivering much-needed improvements in key areas and providing a solid platform for global high quality standards.” What is that even supposed to mean? Sounds like the same pro-convergence gibberish we’ve been hearing all along.

Someone come get us when this actually means something.

Who Among Us Considers the IASB a “Success Story”?

Count IASB Vice Chairman Ian Mackintosh as one.

Ian Mackintosh called the IASB a success story, saying global standards are now accepted in more than 120 countries and high-profile non-signer the US will make a decision later this year.

A high-profile non-signer who increasingly sounds pessimistic about the whole exercise. Oh! India and Japan aren’t sold either. Sounds like a winner, doesn’t it?

Investors: IFRS unfit for purpose [Accountancy Age]