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Unformatted text preview: 1 Remarks by Leslie F. Seidman Chairman of the Financial Accounting Standards Board To the National Association of State Boards of Accountancy Monday, October 24, 2011 / Nashville, Tennessee Introduction Good morning. It’s an honor to be here with you in Nashville, the country music capital of the world. My remarks today reflect my own personal views, rather than an official position of the FASB. That said, I’d like to spend the next few minutes sharing with you my thoughts on three subjects, all of which are very important to our profession – and to our country: First – The status of our work with the IASB on converging some key accounting standards. Second – My views about the incorporation process for IFRS laid out by the Securities and Exchange Commission And third – Where we stand on the issue of standard-setting for private companies. I will leave some time to answer your questions at the end. Convergence Let me start with our progress on the convergence of U.S. GAAP with IFRS. As you know, the FASB has been working with the IASB to narrow the differences between U.S. GAAP and IFRS, to foster the goal of someday having accounting standards around the world that result in comparable, useful financial information. 2 We’ve already made a significant amount of progress. For example, we have largely converged our standards on business combinations, stock compensation, and nonmonetary exchanges, which together eliminated some of the most significant differences that had been reported by foreign private issuers. Sometimes we made changes to move the U.S. towards IFRS, such as in the case of business combinations. Sometimes the IASB made changes to move IFRS more towards U.S. GAAP, such as in the case of borrowing costs and segment reporting. We recently issued converged standards on the definition of Fair Value Measurement and the presentation of Comprehensive Income, which will bring greater consistency to reporting around the world. The remaining priority issues to be resolved under our Memorandum of Understanding with the IASB are Revenue Recognition, Leasing and Financial Instruments. These topics reflect very prevalent transactions that most companies have, at least to some degree. The goal for all of these projects is to improve both IFRS and U.S. GAAP, rather than using either standard as the starting point. That is why these projects are so challenging – they will apply to almost every company around the world, and investors care about them -- so it is very important that we get them right. Together with the IASB, we plan to issue a revised exposure draft on revenue recognition in the next few weeks. Even though most of the changes we made to revenue recognition addressed the comments people made on the first Exposure Draft, we decided to re-expose our work for quality control purposes: revenue is perhaps the single, most important line item in financial reports....
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This note was uploaded on 11/20/2011 for the course FINANCE 640,722 taught by Professor Chabiyo,reeves during the Fall '11 term at Ohio State.
- Fall '11