IASB/FASB Convergence by 2011: Appropriate Speed or Rushing In?

The International and (U.S.) Financial Accounting Standards Boards have revised their memo of understanding and pushed the goal of convergence between international financial reporting standards (IFRS) and U. S. generally accepted accounting principles (GAAP) forward to 2011. A catalyst for the revision was an recently-announced SEC roadmap which sets a goal for converting U. S. public company financials to IFRS by 2014. IASB Chairman David Tweedle (remember that name) indicates that the U. S. accounting community is not alone: Canada, India, Japan and Korea are also planning to achieve convergence by 2011. Key issues to address in accomplishing convergence include leases, revenue recognition and preparation (form?) of financial statements.

Probably very scary news for auditors and for financial/accounting executives of publicly traded companies; basically a three-year window exists to get XBRL adopted AND prepare for IFRS. Not sure whether there will be tax implications to convergence, but I certainly would not surprised if there were.