FAF and FASB Support SEC's Statement on Global Accounting Standards
The Financial Accounting Foundation (FAF) and the Financial Accounting Standards Board (FASB) acknowledge the SEC’s leadership regarding its consideration of global accounting standards, including its continued support for the goal of a single set of high quality globally accepted accounting standards, as expressed in the commission’s ‘Statement in Support of Convergence and Global Accounting Standards’ issued on 24 February 2010.
Both the FAF and the FASB support the SEC’s view that a single set of high-quality globally accepted accounting standards will benefit US investors. This goal is consistent with their mission of providing high quality standards for investors and capital market participants, which help ensure fair, orderly, and efficient markets, and assist in capital formation.
The FASB continues to pursue the goal of a single set of high-quality accounting standards with the International Accounting Standards Board (IASB), as evidenced by intensified work efforts between the two boards on the convergence projects identified in the memorandum of understanding (MoU) with the IASB.
The FAF and FASB support the SEC’s further consideration of the issues identified in the ‘work plan’ in making its determination on whether and how to transition the current financial reporting system for US issuers to a system incorporating International Financial Reporting Standards (IFRS). The FAF and the FASB stand ready to fully assist the SEC as it works toward a decision next year.
As the FASB aims to complete in 2011 the important projects identified in its MoU with the IASB, it expect 2010 to be a pivotal year of progress. As shared standard-setting goals continue with the IASB, the FASB will maintain a priority for the pursuit of improvement in standards, an essential ingredient for the completion of MoU projects and a focus also underscored in the work plan in the segment entitled “Sufficient Development and Application of IFRS for the US Domestic Reporting System”. The FASB will continue to address reporting issues of critical importance to US investors and financial markets while pursuing the international standard setting agenda.