G-20 Reiterates Call for Convergence

BY MATTHEW G. LAMOREAUX

For the fourth time in less than two years, the Group of 20 (G-20) leaders called for a single set of global accounting standards and urged FASB and the IASB to complete their convergence projects.

 

“We re-emphasized the importance we place on achieving a single set of high quality

improved global accounting standards,” said the group’s joint declaration following a summit in Toronto last week.

 

The G-20 statement appeared to accept the standard setters’ revised timeline, which previously ended June 2011 but has now been extended through the end of 2011 to accommodate stakeholder concerns over the complexity and large volume of new proposals being released for public comment (see “ Big Changes Proposed for Revenue Recognition” and “FASB, IASB Propose Common Standard for Fair Value Measurement and Disclosure ).

 

 “We urged the International Accounting Standards Board and the Financial Accounting Standards Board to increase their efforts to complete their convergence project by the end of 2011,” the G-20 leaders said.

 

The G-20 is a relatively new organization whose prominence has grown rapidly since the George W. Bush administration invited the G-20 leaders to Washington to discuss the financial crisis in November 2008. Prior to the Washington summit, the G-20 was an organization not of national leaders, but of the finance ministers and central bank governors of 19 of the world’s most significant industrial and emerging economies, and the European Union. The G-20 had no official powers or permanent staff, and its decisions depended on the follow-through of its members within the limitations of their authority in their respective jurisdictions.

 

At the Pittsburgh summit in 2009, the leaders of the G-20 nations, hosted by President Barack Obama, opened a new chapter to the organization’s role in world affairs with their agreement to designate the G-20 as the premier forum for international economic cooperation. The next G-20 Summit is scheduled to be held in Seoul, South Korea, in November. 

 

Matthew G. Lamoreaux ( mlamoreaux@aicpa.org) is a JofA senior editor.

 

More from the JofA:

 

 Find us on Facebook      Follow us on Twitter

 

SPONSORED REPORT

Time to prepare for overtime changes

As an employer, trusted business adviser, or HR professional, you will need to be aware of exemption guidance, record requirements, advice for clients, and typical problems in applying overtime pay.

QUIZ

News quiz: Good news on pay and benefits for accountants

CPAs can find much to like in recent reports, including news that their expertise and skills are in such demand that pay is expected to rise and that their employers value professional certifications.

CHECKLIST

Bolster your data defenses

As you weather the dog days of summer, it’s a good time to make sure your cybersecurity structure can stand up to the heat of external and internal threats. Here are six steps to help shore up your systems.