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

Scorecard preparation templates and tips

With Workiva, we've created a PowerPoint deck that helps you create your own scorecards -- quick reference reports used across organizations to update stakeholders on the performance of defined deliverables.

100th ANNIVERSARY

Black CPA Centennial, 1921–2021

With 2021 marking the 100th anniversary of the first Black licensed CPA in the United States, a yearlong campaign kicked off to recognize the nation’s Black CPAs and encourage greater progress in diversity, inclusion, and equity in the CPA profession.