Final standards in convergence projects expected by mid-2013

FASB and the International Accounting Standards Board (IASB) expect to issue final, joint standards in their major convergence projects by mid-2013, according to a report to the Financial Stability Board (FSB) Plenary on Accounting Convergence posted Monday on the IASB website.

The boards expect to begin redeliberations on their joint project on revenue recognition in the second quarter of 2012, according to the report. In the second half of 2012, they plan to re-expose their projects on leases; insurance; and impairment, and classification and measurement of financial instruments, the report says.

A final standard on revenue recognition is expected early in 2013. Final standards on leases and financial instruments are expected later next year.

In the report, the boards seem to acknowledge that their pace is deliberate, saying that delays are unfortunate but necessary to ensure that the changes bring about improvement to financial reporting.

“It is incumbent on the boards to ensure that changes made to our accounting requirements are appropriate, that our stakeholders have had the opportunity to fully participate in the process, and that the boards have been responsive in considering stakeholder feedback in the process,” the report says. “Re-exposure, in this case, is part of that process.”

The Financial Stability Board is an international body whose stated mission is to develop and implement strong regulatory and supervisory policies in the interest of financial stability.

The report to the FSB’s Plenary on Accounting Convergence notes that the SEC’s much-awaited decision on whether to mandate the use of IFRS for U.S. public issuers is expected shortly.

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