The deadline to converge IFRS with US GAAP is
to be delayed six months until the end of 2011 in order to allow
greater public consultation.
US Financial Accounting Standards Board (FASB)
chairman Robert Herz told Reuters a revised work plan is likely to
be released in the next couple of weeks.
Although the mid-2011 deadline for
substantially converging IFRS with US GAAP had been strongly
endorsed by the G20 and the Basel Committee, to meet it the FASB
and International Accounting Standards Board (IASB) would have to
release an unprecedented 10 proposals in the next two months.
Several stakeholders have warned they would
not have time to draft quality responses to all the proposals in
that timeframe and the quality of the final standards would suffer
as a result.
Herz expects the boards will stagger the
release of their proposals over the next seven to nine months so
the bulk of convergence will be completed by the end of 2011.
The convergence project will create a single
accounting language that is expected to be adopted by nearly all
jurisdictions in the world.
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At present, most of the world reports or has
committed to report under IFRS while the US is the only major
country that retains national GAAP. The success of the convergence
project is being carefully watched by the US Securities and
Exchange Commission as it decides whether to adopt IFRS.