Sir David Tweedie had some interesting remarks after urging the FASB to converge to IFRS.
"Do you understand Chinese accounting? Do you understand Indian accounting? The answer is no. But you will when they use IFRS, and you will invest when you know where the answers are," Tweedie added.
In the United States, the IASB has held talks with the Financial Accounting Standards Board (FASB) for years to bring international accounting rules close together.
"Ultimately, we have to speak for the international community. If we disagree with FASB, we have to do what we think is right," Tweedie said. "We can't converge at all costs. At present, they wish a much (less rigid concept of) fair value than we believe the rest of the world would accept or even think is appropriate."
At the same time, he said he expects the U.S. Securities and Exchange Commission will produce a statement in the next few weeks saying what the United States will do about moving toward international accounting standards. "I think they will confirm they will make a decision next year."
"We have all the major economies signing up for IFRS except the United States... I think if they decide they don't want to use the standards, there will be a resistance in the world. I don't think the United States wants to be isolated," he said.
1 comment:
well, actually Chinese accounting is very much like IFRS as they just copied a bunch of IFRS articles. Even if all these countries adopt IFRS, we wouldn't be able to understand all of them easily. The reason is quite obvious, IFRS leaves too much judgmental stuff to that country. It is highly possible that two countries are both using IFRS but actually there is quite difference in there if you dig into the details.
I personally don't think changing to IFRS for US is a good idea.
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