When accounting goes unaccounted for
This is the man that is going to make one high-quality set of global accounting standards a reality.
Related: The Wall St. Journal discovers that global accounting rules have been politicized. WHO KNEW?!?
The non-accountant at the IASB [FT Alphaville]
The Politicization of Global Accounting [WJS]
For the first times since we started paying attention, the TIGTA is simply putting everyone on notice that the IRS is on top of this IFRS thing. No “You suck at this IRS” or “Here’s a list of things you should considering doing if you are interested in not sucking any more, IRS.” Simply, “Here’s what they’re doing. Have a nice day.”
The IRS began developing plans for strategic and operational activities related to the adoption of the IFRS in 2009.
TIGTA found that the IRS: is training employees about IFRS concepts and potential issues; working with the tax preparer community to identify and outline IFRS implementation concerns; and developing procedures to address issues related to IFRS conversion efforts.
“The IRS is appropriately laying the groundwork for its increased oversight of international taxation by gaining an understanding of the International Financial Reporting Standards,” said J. Russell George, the Treasury Inspector General for Tax Administration.
TIGTA did not make any recommendations in this audit and the IRS did not provide any comments on a draft of the report.
Doesn’t quite feel right, does it?
Look, pal. We get that you’re anxious to slap these sets of accounting rules together like an IKEA ottoman. We also get that you and a certain knight want – nay – need the RW&B to be on board.
But we don’t know who you’re trying to boss here. See, we’re fairly certain you’d be speaking German if it wasn’t for us. Furthermore, in case you haven’t noticed, we like dragging things out until the last possible minute. Or just ignoring things until we have a giant mess on our hands and then we try cleaning up. Why would we treat IFRS any different?
We understand it’s a new century, millennium and you guys have a rough go in the World Cup but you can give it a rest.
We’ll get to IFRS when we’re good and ready and just because today is Bob Herz’s last day at the FASB doesn’t mean you need to get all anxious about it:
The US is due to make a decision about whether fully buy in to international standards in the latter half of next year. There has been speculation that the appointment of a new chairman for the US standard setter, FASB, could determine which way the world’s biggest economy will go on international standards.
In a speech yesterday to a conference organised by European financial think tank EUROFI, Barnier welcomed the involvement of the US in the Basel talks on financial regulation. But he added that the US should not part company with IFRS.
“It’s essential that we adopt the same prudential framework. I say this very simply, we cannot afford to take the risk of divergence in this area. And this is also the case for accounting standards,” he said.
EU chief urges US to buy into IFRS [Accountancy Age]
Just because Golden Boy is assuming Roberto’s seat on Friday, don’t think Herz is spending his final days as the FASB Chairman perusing the web for the latest D-list celebrity sex tape:
The International Accounting Standards Board (IASB) and the US Financial Accounting Standards Board (FASB) today announced the completion of the first phase of their joint project to develop an improved conceptual framework for International Financial Reporting Standards (IFRSs) and US generally accepted accounting practices (GAAP).
The objective of the conceptual framework project is to create a sound foundation for future accounting standards that are principles-based, internally consistent and internationally converged. The new framework builds on existing IASB and FASB frameworks. The IASB has revised portions of its framework; while the FASB has issued ‘Concepts Statement 8’ to replace ‘Concepts Statements 1 and 2’.
This first phase of the conceptual framework deals with the objective and qualitative characteristics of financial reporting. As part of the consultation process, the IASB and FASB jointly published a discussion paper and exposure draft that resulted in more than 320 responses.
Along with the heavy lifting that comes with the FASB chairmanship, we imagine Herz is also doing some reflecting this week as his tenure comes to an end. You know, reading some of his favorite comment letters and drafting a farewell/thanks for all the good times email to Barney Frank and the ABA. Stuff like that.
IASB and US FASB Complete First Stage of Conceptual Framework [Business Wire]
I’ve talked to a lot of panicked CPA exam candidates out there who seem to be bewildered and anxious about CBT-e changes coming up in just a few short months and even though we’ve covered it plenty here on Going Concern, I figured I’d take the time to remind you once again to relax. Please. Seriously. Like now.
A few things to keep in mind and then we’ll get to the good part.
1. Accounting is still accounting and IFRS puts debits on the left too. While international standards are spooking everyone, let’s take a deep breath and remember that accounting is still accounting whether it’s GAAP, government, IFRS or that wonky version of financial accounting that the Fed gets to make up. For the first few testing windows, if not years, it is highly likely that the AICPA will take a conservative approach when it comes to integrating the new standards into the CPA exam. They are not going to scrap years worth of effort put in to the computerized exam just to test international standards that aren’t even used in the U.S. so stop thinking 2011’s exam is THAT much different.
2. Regulation isn’t really changing at all. Does it ever? You’d be surprised how little the exam changes from year to year even as new standards are released and introduced to the bank of questions candidates receive. The fundamentals haven’t changed much over time and probably won’t. In the last three years, I can only remember two very large changes: a massive overhaul of Audit in mid 2007 that changed a lot of terminology but not much else and FAS 141(r) or, as candidates know it, business consolidations last year. Beyond that, the meat and potatoes of the exam have remained pretty constant in the 6 years since the exam went computerized.
3. Simulations will be easier. Believe it or not, the new sims should be way easier than the current ones. Instead of hoping you get a simulation that covers the two or three areas you studied (ahem, procrastinators, I’m talking directly to you), you get 6 or 7 smaller simulation problems that cover a multitude of areas. This makes your crapshoot odds of knowing what you’re doing far better than they are under the current structure.
So, now that we’ve pointed out those few things, I think you should know that there’s no reason to hold off on studying this year if your plan is to start taking exams in the beginning of 2011. GAAP will not change and will still be tested, it is just that new international standards will also be added to the mix.
You can certainly get a jump on studying by going over the current material towards the end of the year and then hit the 2011 stuff once it is available. Otherwise you’ll have to cram up to 150 hours of studying into a couple weeks right after New Year’s when you’re probably in no mood to study anyway. Trust me, a fourth quarter 2010 FAR exam isn’t going to be drastically different from a first quarter 2011 FAR exam except for the obvious international stuff sprinkled throughout. No big deal.
You CAN use 2010 books to START to prepare for the 2011 exam, just be sure to update them with 2011 material once it is available. If you rely solely on 2010 materials you will probably fail but you can definitely use them to get the foundation on topics that are still going to be tested in 2011 and beyond in much the same way they have been since 2004.
Hope some of you can now sleep at night. You’re welcome.
Those of you who graduated in May should already be buried in your review books and planning to sit for some parts – if you haven’t already – but for some of you, the long wait to get your applications processed is anything but over OR you managed to procrastinate up until this point and haven’t even begun the process. I’ll resist the urge to smack you if you promise to submit those as soon as you’re done reading this post. Regardless of where you’re at in the process, chances are you’re tripping about 2011 changes. Not to worry, my big fat brain packed with CPA exam goodness is here to help.
Accounting Is Still Accounting – Even if they are testing IFRS in 2011, debits still go on the left (at least I’m pretty sure they still do under IFRS) and pension accounting is still really annoying. Keep in mind, IFRS isn’t the norm in the wild – at least in the U.S. at this point – and will not be for several years so it would be irresponsible of the AICPA Board of Examiners to heavily test rules that aren’t even widely accepted in practice. So relax, the changes are coming but they aren’t nearly as scary as you think.
FAR – If you are able to, get FAR done this year so you don’t have to worry about it next year. The first two windows of 2011 will say a lot about the AICPA’s strategy but knowing them, I wouldn’t expect 2010’s exam to be completely different from 2011’s. Those questions cost a lot of time and energy to make and the BoE isn’t about to trash all of them just so they can start testing rules that we don’t even use. With me on this one? Calm down.
CPA Review Materials – If you haven’t yet committed to a CPA review course, be sure to ask about 2011 materials and how changes affect the course you choose THIS year. A good review course will offer updates to the material but be on the lookout for additional product purchase charges or fees to update your materials. For BEC, REG and AUD the changes are minimal: international audit standards will appear here and there and a few things are moved around but for the most part the largest change in these areas will be the cosmetic change in BEC as written communications are moved out of the other three sections and stuck there. This does not change the content, only how you prepare and the point percentages for this section.
You can find the new 2011 CSOs via the AICPA here if you’d like a better look at what you’re in for next year but as I said, it doesn’t take long to figure out that next year’s exam really doesn’t look all that different from this year’s.
Parties Play Politics With Unpopular Tax Measure [WSJ]
The new 1099 reporting requi a bit of belly aching to point of many groups asking for a repeal. Too bad the members of Congress are the ones with the power to actually make something happen:
“The House rejected a bill Friday that would have repealed the provision. The two parties disagreed on how to make up the lost revenue.
‘This foolish policy hammers our business community when we should be supporting their job growth,’ Sen. Mike Johanns of Nebraska said in the Republicans’ weekly radio and Internet address Saturday. ‘It’s only one example of how the administration’s promise to support small businesses really rings hollow.’
Democrats blamed Republicans for Friday’s failure.
‘Despite all of their rhetoric about the need to eliminate this reporting requirement, Republicans walked away from small businesses when it mattered most,’ said Rep. Sander Levin (D-Mich.), chairman of the House Ways and Means Committee.”
FASB Alumnus Trashes GAAP (and IFRS) [The Accounting Onion]
“I suspect that the folks being paid the big bucks to make the tough calls on accounting standards don’t pay a lot of attention to to the likes of Tom Whatshisname, even were I to announce that the sky is falling. But, I don’t take it personally. Over the past 40 years, any PhD not drawing a salary from the Big Four has been viewed with more suspicion than respect by the standard setting establishment.
I mention all of this now, because there is a new voice, whose credibility and qualifications cannot be so easily dismissed. That voice belongs to FASB alumnus David Mosso, who has written an 80-page monograph entitled Early Warning and Quick Response: Accounting in the Twenty-First Century). If you don’t want to believe me, take it from him: GAAP is broken.”
Group formed to overhaul financial reporting [Accountancy Age]
Meanwhile: “A project to overhaul company reporting has been launched by a high level group of accountants, businesses, regulators and market participants.
The International Integrated Reporting Committee will look at the wider concerns about financial reporting, in terms of addressing risk, and presenting a clearer and broader picture of companies’ performance, including governance and environmental issues.”
Goldman Details Its Valuations With AIG [WSJ]
“How did Goldman come up with the mortgage-securities prices it used to extract cash from AIG?”
Before There Can Be An IPO, First Comes A New CFO For Zynga [Tech Crunch]
Dave Wehner comes in from Allen & Co. taking the spot of Mark Vranesh who is becoming Chief Accounting Officer. What does all this mean? First, it gives most MSM outlets a day or two worth of stories about when Zynga will go public but mostly it means the business of Farmville, no matter how you hate it, is serious business.
Facebook Would-Be Owner Says He Owes His Claim to Arrest [Bloomberg]
“Paul Ceglia, who claims in a lawsuit that he owns 84 percent of Facebook Inc., said his case wouldn’t have been possible if state troopers hadn’t come to his house in October to arrest him for fraud.”
Forced Employee Engagement and the Overworked Employee [The Exuberant Accountant]
“In my many interactions with business owners, I have heard some speak of employees as being ‘lucky to still have a job.’ While that may be true, thinking (and acting) in such a manner is very short sighted.”
Twitter, Facebook, LinkedIn? [AccMan]
Got business model?
House Vote Sends Finance Overhaul to Senate [WSJ]
“The House agreed Wednesday to a sweeping rewrite of the nation’s financial regulations, moving the initiative one step closer to becoming law.
Focus now shifts to the Senate, where questions linger about whether Democrats have nailed down enough support from the handful of Republicans needed to overcome a likely filibuster. The Senate won’t take up the bill until after the July 4 recess, creating an awkward pause in which the bill’s opponents will have one last chance to derail it.”
Google to Add Pay to Cover a Tax for Same-Sex Benefits [NYT]
“On Thursday, Google is going to begin covering a cost that gay and lesbian employees must pay when their partners receive domestic partner health benefits, largely to compensate them for an extra tax that heterosexual married couples do not pay. The increase will be retroactive to the beginning of the year.
‘It’s a fairly cutting edge thing to do,’ said Todd A. Solomon, a partner in the employee benefits department of McDermott Will & Emery, a law firm in Chicago, and author of ‘Domestic Partner Benefits: An Employer’s Guide.’
Google is not the first company to make up for the extra tax. At least a few large employers already do. But benefits experts say Google’s move could inspire its Silicon Valley competitors to follow suit, because they compete for the same talent.”
Senate chairman starts probe of Transocean’s taxes [AP]
Senator Max Baucus (D-MT) would like to know whether Transocean’s move offshore was an exploitation of U.S. tax law, “The chairman of the Senate Finance Committee is launching an investigation into the tax practices of Transocean Ltd., owner of the Deepwater Horizon rig that exploded in the Gulf of Mexico, leading to the massive oil spill.”
Sadly, this will lead nowhere since exploitation ≠ illegal in this case. Deplorable? Yes. Tax malfeasance? No. Political pandering? Absolutely.
Deloitte CEO Barry Salzberg Wins Executive of the Year – Services at the 8th Annual American Business Awards [PR Newswire]
It’s a Stevie award! BS beat out Jeffrey Bezos, chairman, president and CEO, Amazon.com; Dominic Barton, managing director of McKinsey & Company; and Joseph Neubauer, chairman and CEO of ARAMARK for the Stevie.
In his own words, “I am very honored by this recognition, which truly is a testament to Deloitte’s progress and the industry-leading work of our more than 40,000 people in the United States. Although we have faced challenging economic times in the past few years, Deloitte’s diverse portfolio of quality services and investment in talent continue to drive our business and differentiate us in the marketplace. We are eager to approach the opportunities that await us and our clients in the economic upturn.”
GAAP and IFRS: Six Degrees of Separation [CFO]
That is, six major differences between the two sets of rules that will have to be ironed out. Namely: error correction, LIFO, reversal of impairments, PP&E valuation, component depreciation and development costs. After that, this convergence thing will be a breeze.
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Now that convergence has been delayed, the anti-convergence/IFRS contingent is hopeful that this is a major sign of defeat. Whether that’s the case or not remains to be seen but don’t expect the debate to go away.
We recently spoke with Dr. Frederick Choi, Dean Emeritus and Distingu��������������������sor of Business and Chair of the Accounting Department at New York University’s Leonard N. Stern School of Business about the latest current events and what Stern does to prepare its students for IFRS in their careers and on the CPA Exam.
GC: So the number one question on everyone’s mind – will the world end if the United States converts to IFRS?
Dr. Frederick Choi: [laughs] My answer to that is to not to worry, the world will continue as it always has, so we’ll continue to have fun with accounting like we always have in the past.
GC: So there’s no risk that the U.S. will lose its imperial superpower status as a result of this?
FC: No, I don’t think so. I think there’s sufficient flexibility in international accounting standards so that we can continue on as before.
GC: So why do you think the SEC is so cautious? Are all those lawyers scared because there might be numbers involved?
FC: First of all, the U.S. environment is a very litigious environment so I think there’s a concern that IFRS will permit more judgment for the company presenting the numbers. U.S. GAAP, because of the litigious environment, has to be a little more prescriptive, that is, “here are the rules, here are the exceptions.”
At one time in the US, our accounting rules were principles-based and required a lot of judgment. In the ‘60s some companies were were cooking the books which resulted in reporting scandals and class-actions. Then someone said, , “hey, the audit firms have a lot money, so let’s go after the auditors.” That’s when accounting prescriptions became much more rules-focused. So I think the big fear is that moving from an environment that is more rules-based to one that is more principles based will require much more judgment and perhaps invite more litigation.
GC: So a little current events question – what do you make of the FASB and IASB’s announcement that the convergence project is going to be a tad late? Was the June 2011 to get those G20 guys off their backs or did they really think they were going to get this pulled off?
FC: I think when they first started the project towards convergence they did so in good faith but there are some significant differences that need to be ironed out. And given the vested interests, it’s going to take a while. I’m not surprised that the deadline has been extended.
GC: And the SEC seems completely all right with it.
FC: Yes.
GC: Say I’m against IFRS – in fact, I’m a militant for U.S. GAAP. I don’t want IFRS anywhere near our capital markets because it’s too principles-based, countries need financial reporting autonomy and that it doesn’t really benefit anyone except a bunch of big accounting firms that need a new revenue stream? Plus, it’s going to be a nightmare for companies to convert to and it doesn’t really help small and medium-sized businesses…
FC: That’s correct.
GC: …having said all that, your response to me is…
FC: I look at this from the point of view of the the analyst. From the point of view of the analyst, the name of the game is to read the tea leaves and get as close to the underlying transaction as possible. The one strength of U.S. GAAP is that there’s a lot of research that goes into the pronouncements. I think U.S. GAAP – without sounding nationalistic – is the best researched, empirically as well as conceptually, accounting standards in the world.
I think an analyst should not be bogged down by whether U.S. GAAP is better or IFRS is better. Analysts have always taken the numbers and massaged them to get closer to what he or she thinks the underlying economics are. In fact, if you look at the not-so-sharp analyst who will say, “Oh, we’re going to IFRS and that’s going to make my life easier,” my response is “No, it’s not.” I think it will be more complicated.
GC: Okay but there are going to be some tricky areas, right? What are those going to be?
FC: I think the biggie is the ability to write down an asset and write it back up. Here in the States, when we impair an asset we cannot go back and reverse it. The rationale behind that was you don’t want to give firms the option to manage the bottom line.
Firms that write asset back up will be able to smooth earnings. Say you and I are in business and we have a good year, so we write down an asset and take the loss. Next year, we say “Oh my god, results are horrible. How can we pump up the bottom line?” We reverse the write-down. So, that’s a big concern that I have. That applies to intangible assets, it applies to plant & equipment, it applies to inventory. So this is a biggie.
Another difference worth nothing is if management feels that the standard they are following is misleading, they can actually deviate from the standard. That’s a major concern as well.
GC: How familiar are you with integrated reporting? How do you think it fits in with the transition and is this something we’ll see more of or are we still at the baby steps stage?
FC: I think from an investor’s point of view, that’s going to be confusing because you’re going to have hard numbers combined with very soft numbers and I’m not so sure that’s going to make life easy. I think if you keep the soft stuff in a separate statement then the analyst can look at the hard numbers and come to a preliminary conclusion and looking at the soft numbers make some professional judgment – do you bump the number up a little bit or do you interpret it a little more cautiously. To me that’s the better state of the world.
GC: And as it stands right now, there’s no way to audit the non-financial information
FC: That’s correct.
GC: What are you doing to prepare your students at NYU for the transition?
FC: I put together a team here at Stern and we looked at all the courses that deal with financial reporting and basically I think the whole approach that we’ve taken is that our responsibility is not to teach students to memorize rules, our responsibility is to teach them how to think and think critically. We say here is an international accounting standard. Let’s talk about various measurement issues that we normally talk about and when a new standard is issued, I’ll expose you to both the U.S. standard and the international standard. For now, those two sets of standards will continue for the next several years. If the international standard is different from the U.S. standard we’ll say “here’s the implications on the financial statements and profitability, liquidity, ratios, etc.” So students can identify the impact of the different measurement framework on the financial statements.
GC: How have you balanced, from a curriculum standpoint, IFRS education and the requirements for the upcoming changes to the CPA Exam?
FC: Our approach is not to teach students to pass the CPA Exam, our approach is provide an education. Students need to learn and think critically because rules will change over time and I think it’s best to develop those critical thinking skills. We infuse international reporting standards throughout the curriculum but not in the sense where we say, “Here, memorize this rule and be able to spit it out and ace that question on the CPA exam.” We’re basically saying, “here are the standards, here are the differences, here’s how they will impact the financial statements and be aware of that.” We have a combined BS/MS in accounting program that prepares students for the 150 hours and a required international accounting and reporting course is part of that degree.
GC: So in other words, they’ve got this on lockdown and they will all be go-to experts on IFRS at their firms?
FC: I think they’ll be able to speak intelligently about IFRS but they won’t be rulebooks.
GC: What are you hearing from the firms that recruit at NYU (other than “send us the smartest ones) on this issue?
FC: I think the market likes our product because we develop those critical thinking skills and our placement rate at the Undergraduate College is close to 100%, so they like the product irrespective if they know IFRS or not because if you’re smart and have the critical thinking skills you can pick up IFRS in very short order. Given a choice between two students – one that has been exposed to IFRS and one that has not, but they’re both bright, and the firm can only take one, of course the firm will take the one with the familiarity with IFRS but I don’t think that’s ever been an issue.
GC: Back to the CPA exam. Of course everyone at NYU will be passing no problem but what about students and instructors elsewhere? Should they cram it in and get it passed in 2010 or will they be ready for the 2011 exam?
FC: I think many schools are already gearing up. We have shared our approach with many schools via workshops, conference presentations and the like. We are always ready to assist. Our approach is, “ We’ve exposed you to IFRS and if it is on the exam, youlcan get more details in a review course or you can bone up on IFRS on your own, but it shouldn’t be a big issue.
Have a question on the CPA Exam? What section is easiest? How should I study for Regulation? Are pants mandatory at the testing site? Shoot us an email with your query.
It’s the big question on everyone’s minds so we better address it now before you cute little CPA exam candidates start freaking out:
Do you know what will happen if as of December 31, 2010 I have completed two sections of the exam? Will I only have to take the remaining two sections or will I be subject to the new exam parts coming in 2011?
Good question. First of all, keep in mind that a lot of the hype surrounding the 2011 changes is:
A) CPA Review course marketing (“buy new materials! Be sure you’re up to date!”)
B) AICPA marketing (“Hey! Check out how advanced we are and how easily we can integrate a whole new set of standards into our psychometric exams!”)
C) Misinformation spread by candidates who “heard from someone” that BEC will now contain 10 simulations and all of them will be graded.
Just stop. The two biggest changes for 2011 are the addition of IFRS (which will mostly affect FAR) and communications in BEC, that’s it! That means get FAR out of the way this year if you can and throw in BEC before December if you are allergic to written communication. The exam changes twice a year anyway, this is nothing new.
Now that that’s out of the way, the rolling 18 month period also stays the same so whatever you have passed in the last 18 months will still be good. Again, if you’re freaking out about all of this, get FAR done ASAP and you will have minimal IFRS and GAAP codification garbage to deal with. A few sections are moved around (for example, business structures will be moving out of BEC) but it’s mostly the same content. REG is hardly changed at all and AUD will be one half hour shorter with more on professional ethics while BEC will be one half hour longer with written communications.
Simulations are trimmed down to “simlets” and instead of getting one topic, you have a better chance of doing well as they will be smaller and consist of several different topics. In my opinion, the exam is just getting easier.
I’m willing to bet that testing will be a bit of a bumpy ride for the first two windows of the year as the AICPA BoE gets its bearings with the new information and somewhat adjusted formats. But debits are still on the left and credits on the right so it’s not worth getting bent out of shape over; the exam will still suck and you’ll still have to study but thankfully, just like thousands of CPAs before you, you’ll rarely use anything you learned for the exam in the real world.
Adrienne Gonzalez is the founder of Jr. Deputy Accountant, a former CPA wrangler and a Going Concern contributor. You can see more of her posts here and all posts on the CPA Exam here.
No, really. They made a song:
Items of note:
– “Spin that beat” had to be requested twice.
– Things don’t get really serious until #20 gets off the stage.
– #21 didn’t know the words but managed to do the arm swinging quite well.
– The line, “My workpapers don’t lie” is obviously a lie. Everyone ghost ticks at some point.
– Calling out the tax practice for not having any swagger is a little presumptuous.
Other thoughts? Go.
Earlier in the week we heard the devastating news that the FASB and IASB’s convergence efforts, despite a good hustle, would not meet the G20’s deadline of June 2011.
FASB Chairman Bob Herz indicated that this was a serious case of the Boards having bigger eyeshades than their double-entry stomachs could handle but he tried to squelch the disappointment by assuring everyone that the mission is not a failure and the Boards would “get most if not all of [the accounting standard proposals] done by the end of 2011.”
Roberto and IASB Chair Sir David Tweedie, feeling bad about how the whole thing turned out, decided to send a letter to the G20, presumably to keep them from getting their panties in knot:
It is expected that this action by the FASB and IASB will not negatively impact the Securities and Exchange Commission’s work plan, announced in February, to consider in 2011 whether and how to incorporate IFRS into the US financial system.
We appreciate the support of the G20 for the development of a single set of high quality global accounting standards. The two boards remain committed to achieving that objective. We shall continue to provide timely updates regarding our progress.
Ohhh, right. The SEC. What do they think about all this? Judging by Mary Schapiro’s attitude of “assuming completion of the convergence projects” as a precursor to IFRS, she’s totally cool with it, making her thoughts known in a statement yesterday:
The boards believe that the modified plan will contribute to increased quality in the standards because it provides additional time for stakeholders to thoroughly consider the proposals and give both boards quality feedback. I view this as time that is well invested.
Quality financial reporting standards established through an independent process are threshold criteria against which the Commission’s future consideration of the role of IFRS in the U.S. reporting system will be based. I foresee no reason that the adjustment to the targeted timeline for certain joint projects should impact the staff’s analyses under the Work Plan issued in February 2010, particularly when that adjustment is designed to enhance the quality of the standards. Indeed, focused efforts on those standards the boards consider highest priority for the improvement of U.S. GAAP and IFRS will facilitate the staff’s analyses.
Accordingly, I am confident that we continue to be on schedule for a Commission determination in 2011 about whether to incorporate IFRS into the financial reporting system for U.S. issuers.
In other words, no rush guys. Take it from Mary, this happens all the time.
IASB and FASB update to G20 Leaders [IASB]
Chairman Schapiro Statement on FASB-IASB Decision to Modify Timing of Certain Convergence Projects [SEC]