FEI's Committee on Corporate Reporting (CCR) recently filed two comment letters with the Financial Accounting Standards Board and the International Accounting Standards Board, expressing concerns regarding the effective dates of the numerous new standards anticipated to be issued by June, 2011 under the FASB-IASB Memorandum of Understanding (MOU). (The suite of standards to be issued by FASB and the IASB under their MOU is referred to as the 'convergence standards' or the 'converged standards' below).
The CCR letter on effective dates of convergence standards, signed by CCR Chairman Arnold C. Hanish, recommends that the effective date and transition provisions of the major convergence standards be considered holistically, rather than on a standard-by-standard basis.
Specifically, CCR recommends that adequate time be provided for the body of converged standards issued under the MOU, through an aggregated effective date providing a three-year period for implementation, with early adoption permitted.
Additionally, as noted in FEI's press release, CCR recommended that the boards "permit preparers, when practical, the flexibility in choosing the method of adoption and the manner of initial adoption (retroactive restatement, cumulative effect, prospective, etc.)"
As further noted in FEI's press release, CCR filed a separate letter with FASB and the IASB "offer[ing] the Boards its assistance with the ongoing MOU projects through providing expert corporate representatives to work with the Boards' project managers, obtaining feedback from the analyst community, and continued quarterly meetings with FASB and IASB to provide further insight." See the CCR letter on MOU projects.
NOTE: See also our prior blog posts regarding the convergence projects under the MOU:
FASB, IASB Confirm Convergence By June, 2011 (Nov. 5, 2009), and
FASB Considering 'Big Bang' vs. Staggered Effective Dates (Jan. 27, 2010).
Additionally, see our most recent posts on FASB, IASB:
FASB Posts Update On Financial Instruments, Fair Value Projects
IASB Amends Constitution; Provides Update On Convergence, Funding
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