After their meeting last week in Washington, D.C., the G20 Finance Ministers and Central Bank Governors (G20) issued a 14-point communique in which they expressed their support for “the efforts of the IASB and FASB to achieve convergence to a globally accepted set of high quality accounting standards,” and urged them to meet their target on key convergence projects “by mid-2013, at the latest, in order to achieve a single set of high quality international accounting standards.”
Reading between the lines. The G20’s endorsement of the FASB/IASB convergence project could essentially buy the SEC more time in deciding how and when to permit U.S.-based public companies to use International Financial Reporting Standards (IFRS) rather than the traditional GAAP, at least for purposes of their SEC filings, says a recent FEI post. “Or this statement of the G20 Finance Ministers could potentially be relied upon as showing geopolitical support for an extended implementation timetable by the SEC.”
Please let us know
if you have any comments about this article or enhancements you would like to see.