What Was The Norwalk Agreement

But errors in meeting common standards on two important issues – leasing and financial instruments – seem to have left unresolved an informed assessment of the obstacles they had been trying to overcome for so long. (The boards also appear to follow separate paths in accounting for insurance contracts, although this is not part of the original MOU.) The recent divergence “compels us to recognize that differences in the cultural, business, legal and regulatory environment in different jurisdictions will inevitably lead to some differences in these norms,” Golden wrote. The attached “Results of Convergence” table provides my perspective on the success of convergence and the resulting improvements to IFRS for each of the projects listed in the various agreements between the IASB and the FASB. Finally, I would like to add that convergence was perhaps the most realistic way to start implementing IFRS in the United States, but that such regulation is not sustainable in the long term. On the contrary, the best approach for any jurisdiction is the application of IFRS. As the directors of the IFRS Foundation recently stated in their 2011 Strategic Report, the FASB and IASB have made slow but steady progress on these other three projects, and a final consolidated revenue recognition standard has been promised for the first half of this year after they were repeatedly deferred. However, significant obstacles remain to reach a final agreement on convergent standards for leasing and financial instruments. These standards have also been repeatedly delayed, with some interbranch organisations and organisations opposing various changes previously proposed by both bodies. In addition, the FASB and the IASB continued to agree on issues such as the treatment of credit losses under the proposed financial instrument. The insurance accounting project has never seemed to have as high a priority as the other three projects, at least for fasB.

Call it a new realism. .

Comments are closed.

We cannot display this gallery