FAF to pay up to $3 million to help IASB’s convergence work

BY KEN TYSIAC

The IFRS Foundation will receive assistance for work on international convergence projects from its U.S. counterpart, the Financial Accounting Foundation (FAF).

FAF announced Tuesday that it will make a nonrecurring contribution of up to $3 million in 2014 to the IFRS Foundation to support the work by the International Accounting Standards Board (IASB) on the four joint projects it is completing with FASB.

The joint projects are underway in an attempt to achieve converged financial reporting standards for revenue recognition, leases, financial instruments, and insurance. FAF will make up to three payments of $1 million each this year to support the projects.

The contributions will come from FAF’s reserve fund. FAF made one previous contribution of $500,000 to the IFRS Foundation in 2011. FASB also has contributed work by its technical staff to the convergence projects.

The FAF Board of Trustees consulted with the SEC before deciding to make the 2014 contribution.

“Completing these joint projects clearly is in the best interests of FASB stakeholders, including all those around the world who invest in U.S. capital markets,” FAF Chairman Jeff Diermeier said in a news release.

AICPA President and CEO Barry Melancon, CPA, CGMA, commended FAF for a contribution that he said will advance the convergence work of FASB and the IASB.

“We hope it serves as a catalyst for a broader discussion by all parties in the financial reporting process on how IFRS should evolve in the United States,” Melancon said in a news release.

Ken Tysiac ( ktysiac@aicpa.org ) is a JofA senior editor.

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.