The United States’ delay in adopting international accounting standards has been very well documented. However, in recent months, with the exposure drafts on revenue recognition and fair value measurements being issued by both the International Accounting Standards Board (IASB) and the Financial Accounting Standards Board (FASB), it appeared as though the U.S. was on board with convergence and moving full speed ahead.
However, recent comments by IASB Chairman, Sir David Tweedie, appear to paint a different picture. Tweedie warned the U.S. that they could lose much of their influence on setting international standards if they don’t soon adopt the very standards they are helping to create.
Many in the international community are wondering why the U.S. has such great influence over setting standards that they might or might not adopt themselves. Currently, the U.S. has 4 members on the IASB and 5 members of the oversight committee.
It is time for the United States to decide whether they want to be part of the convergence to international standards. If the United States waits too long, they might find themselves in a position of adopting standards that they had very little or no influence in creating.
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