Accounting News

Monday, January 30, 2012
FASB and IASB Look at Classifications

As part of the proposed Accounting Standards Update published in 2010, the Financial Accounting Standards Board (FASB) and the International Accounting Standards Board (IASB) are reviewing the classification models used by the two standard setting bodies.The classification standards had taken a back seat to revenue recognition issues. The issue of classifying financial instruments has been more difficult than anticipated.

There is pressure on the talks by the Securities and Exchange Commission (SEC) and the European Commission to come to an agreement. The SEC is considering approving the IASB standards for financial reporting. Currently they only allow FASB rules (commonly referred to as GAAP, generally accepted accounting principles).

Progress between the two bodies continues but it is still not clear if a comprehensive agreement is possible in the near term.

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