Point of view: The future of US standard-setting - The road ahead

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Point of view 09/17/2013 by Assurance services
Point of view: The future of US standard-setting - The road ahead

At a glance

As the era of joint standard-setting with the IASB comes to a close, this Point of view sets out why the FASB should continue to focus on improving the quality of US GAAP in key areas while preventing further divergence between US GAAP and IFRS when feasible.

As the era of joint standard-setting with the IASB comes to a close, our view is that the FASB should continue to focus on improving the quality of US GAAP in key areas while preventing further divergence between US GAAP and IFRS when feasible. We encourage the FASB to prioritize topics where simplification is needed and where the current guidance no longer provides decision useful information that meets the evolving needs of stakeholders.

The FASB should also continue to play a central role in providing implementation guidance on the converged standards (revenue recognition, leasing, and financial instruments). This will help to ensure that implementation of those standards results in quality financial reporting and that a high degree of global comparability is maintained.

The creation of the Private Company Council is an important development for preparers and users of private company financial statements. We encourage the FASB to view the Council’s decision-making process as an opportunity to improve the quality and efficiency of financial reporting for all companies, whether public or private.