OUR THOUGHTS ON:

FASB's Convergence Timeline Delayed Once Again

Audit

By Todd Lucas

In a recent interview, FASB chair Leslie Seidman noted that several of the higher priority convergence projects will most likely be delayed until 2012, at the earliest. This is not the first time that the FASB and IASB have delayed their projects. The projects being delayed are revenue recognition, financial instruments, leasing and insurance contracts.

“We have been working with a very determined pace for a sustained period of time,” said Seidman. “And the changes that we have made to the timetable have been directly in response to the nature and the extent of the feedback that we have received on all of those proposals.

Seidman further commented, “This is a real process with real outreach and real consideration of the issues that have been raised. And the fact of the matter is that it takes time to work through these issues. The changes which we have made to the timetable, which we have made jointly with the IASB, have been very well received among the constituents who take this process seriously. They are very supportive of our strong commitment to making sure that we end up with improved standards here that are going to stand the test of time. Nobody wants us to rush through this process only to end up with a standard that needs to be amended and deferred. We want to maximize the likelihood that we have a smooth implementation of these new important standards when we feel that we have completed the process to our satisfaction.”

Seidman went on to comment that both revenue recognition and leasing will be re-exposed for 120 days in the near term with hopes of concluding these projects during the first half of 2012. She gave no specific timeframe for the completion of the impairment project.

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