We’re sure all of you have been anxious for an update since the last FASB/IASB progress report last November, wait no longer.
• 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.
• Given priority to the three remaining Memorandum of Understanding projects, as well as insurance accounting: The Boards have made substantial progress towards completion of the three remaining MoU projects covering financial instruments accounting, leasing and revenue recognition, as well as their joint project to improve and align US and international insurance accounting standards.
• Provided for further time to finalise their convergence work: The boards have agreed to extend the timetable for the remaining priority convergence projects beyond June 2011 to permit further work and consultation with stakeholders in a manner consistent with an open and inclusive due process. The convergence projects are targeted for completion in then second half of 2011 (however, the U.S. insurance standard, which has not yet been exposed, is targeted for the first half of 2012).
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.
Does there happen to be a law in the EU that says that if you’re not a knight you have to keep your piehole shut when it comes to accounting rules? Because if there isn’t, there needs to be. We may give Sir David Tweedie a hard time here (mostly because we’re jealous of the prefix) but we hardly think that he needs pressure from anyone on double-entry accounting.
Despite the knighted one keeping his promises, Eddy Wymeersch, chairman of the Committee of European Securities Regulators (CESR) has made it known that the IASB isn’t floating his boat and he would like to go back to the bureaucratic drawing board.
Wymeersch questioned whether there was adequate accountability at the IASB, a London-based body that has already made several changes to its governance, such as setting up a new monitoring group.
“I can remind you the CESR thought it should be in the monitoring group but that did not take place. In my view, this has to be drawn up again and start from scratch,” he said.
Please, non-knight Eddy Wymeersch, remind us that you suggested that you should be allowed to stick your beak into the IASB’s business. We have trouble remembering that politicians all across the blue marble so desperately want to be involved in the oversight of accounting rules.
EU regulator calls for accounting overhaul [Reuters]