Financial Reporting Release, January 2014

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It was over a decade ago now that the IASB and FASB established their joint program to improve and align IFRS and US GAAP. Originally designed to bring the two GAAPs together on a fast track basis, and keep them aligned, it soon settled into the accounting equivalent of long-term trench warfare. 

The results have been mixed. Sure, there have been a few spectacular successes, but there have been some rather spectacular failures too. You’ll see vivid examples of both as we review the status of the convergence projects the boards are still working on revenue recognition, insurance, leases, impairment, and financial instruments.

With the program drawing to a close, is there a way forward? We expect that it will come as little surprise that expectations and visions on this score differ rather wildly. If there’s broad agreement on anything, it’s that the past doesn’t provide much of a roadmap for the future. What are the alternatives?

Specific topics in this issue include:

  • The future of GAAP convergence
  • The future of IFRS
  • The Conceptual Framework
  • Revenue
  • Hedging
  • Rate regulated accounting
  • Levies
  • Own credit
  • Leases
  • Impairment in loans and trade receivables
  • Classification and measurement of financial assets
  • Insurance contracts

Download the full report to learn more.