Accounting convergence — IASB update for G20
On 24 June 2010, the IASB provided and update to the G20 regarding the status of various convergence projects. The accountants’ current best estimate of when this project might come to conclusion is the second quarter of 2o11….after the previously stated G20 target date. This delay is no surprise. The FSB update in April indicated in stark language that the project was running into difficulty, as did the IASB’s update for the Busan meeting earlier this month. Close followers of this issue will note that on valuation issues in particular, near-term trends suggest FASB and the IASB are actually diverging rather than converging on underlying standards.
The Risk Telescope is following closely and in some detail the various trends that will affect the ability of the accounting standards setters to meet their long-stated convergence targets…not to mention the G20 priorities. The economic, EU political, banking regulation, and accounting priorities are not in line and will continue to generate challenges for the foreseeable future. We will not be surprised if the 2Q11 target date also slips.
