News Highlights for December 2010


The AICPA’s Financial Reporting Executive Committee (FinREC) said it was concerned about the fair value measurement and impairment models along with other provisions of FASB’s comprehensive proposal to revamp financial instruments accounting.

 

FinREC (formerly the Accounting Standards Executive Committee) said that, while it shares the board’s desire to provide financial statement users with a more timely and representative depiction of companies’ involvement in financial instruments and supports FASB’s efforts to achieve greater convergence with the International Accounting Standards Board (IASB), it believes changes are needed to Proposed Accounting Standards Update, Accounting for Financial Instruments and Revisions to the Accounting for Derivative Instruments and Hedging Activities.

 

FinREC’s comment letter, which includes an attachment with 27 pages of detailed suggestions, recommends changes to several provisions of the FASB proposal.

 

FinREC said it does not support the proposal overall “because it fails to achieve convergence [with the IASB] on fundamental issues … We encourage the FASB and IASB to work together on the financial instruments standard and reconcile the differences in their models.”

 

FASB received more than 2,600 comment letters on its financial instruments proposal. The letters are available at tinyurl.com/26xzw4j.

 

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