Accounting rule convergence is dead. I know it. You know it. Hans Hoogervorst knows it. Everyone has accepted the fact that the SEC managed to tell IFRS supporters to stick their principles-based rules where the sun don't shine in the most passive-aggressive way possible. Yes, the IASB is still coming up with pathetic ideas to convince holdouts that they're the coolest gang of double-entry wizards around, but, really, they know it's over.
"The FSB reiterates the benefits of a timely completion of convergence and considers it important that the convergence programme not lose momentum in other areas," FSB chairman Mark Carney told G20 finance ministers meeting in Mexico on Monday. "The FSB will request by no later than end June 2013 a joint IASB-FASB report on all outstanding items with a specific timetable for completion," Carney, also Bank of Canada governor, said.
Hoogersvost told The Accountant the IASB will continue to work in close cooperation with the FASB on the remaining convergence projects such as financial instruments, revenue recognition and leases but that once this work is complete “convergence will come to an end”. “I support the FSB’s call to complete these remaining projects on a timely basis. Leslie [Seidman, FSB (sic) chairman] and I have already said in public that once this work is complete, convergence will come to an end. Instead, we will work with the US on a multilateral basis,” Hoogersvost said.
Hopefully everyone's on the same page now.
Hoogervorst: IFRS unstoppable, US to make its choice [The Accountant via Matt Kelly]