Michael Cohn of Accounting Today on Tuesday, September 20, in “FASB Convergence Timeline Moves to Next Year,” reported, “Financial Accounting Standards Board chair Leslie Seidman said that many of the priority projects slated for convergence with the International Accounting Standards Board probably will not be settled until next year at the earliest.”
Unfortunately, Seidman says that progress is being made.
American accounting rules, once the best in the world, have been set on a course to converge with business-friendly European accounting rules. European accounting rules also are known as IFRS (International Financial Reporting Rules). Business-friendly make it easier for corporations to fudge the numbers, while providing insufficient information to investors to make informed decisions (see “Investors Say IFRS ‘Unfit for Purpose‘ ”), it is my opinion that the United States should drop the convergence project and roll back recent rule changes made simply for convergence purposes.
I am not the only critic of IFRS. Tom Selling has never stopped beating the drum against IFRS. His most recent blog post on IFRS, “I’m Not the Only One Dissing the SEC’s IFRS Fixation,” identifies recent anti-IFRS comments by notables Lynn Turner, Jack Ciesielski, Ed Ketz, Tony Catanach and Floyd Norris. Go team go!
Debit and credit – - David Albrecht