News Release 01/28/14
FINANCIAL ACCOUNTING FOUNDATION TO PROVIDE UP TO $3 MILLION TO IFRS FOUNDATION TO AID COMPLETION OF JOINT IASB PROJECTS
Norwalk, CT, January 28, 2014—The Financial Accounting Foundation (FAF) today announced that it will make a non-recurring contribution of up to $3 million to the International Financial Reporting Standards Foundation (IFRSF) to support the completion of international convergence projects.
The FAF Board of Trustees made the decision in consultation with senior officials of the Securities and Exchange Commission (SEC).
The contribution, to be made in up to three payments of $1 million during 2014, is intended to support the IFRS Foundation’s standard-setting body, the International Accounting Standards Board (IASB), during the period that it is completing work on four joint accounting standards projects underway with the Financial Accounting Standards Board (FASB).
The joint projects involve accounting for revenue recognition, leasing, financial instruments (both classification & measurement and impairment), and insurance.
“Completing these joint projects clearly is in the best interests of FASB stakeholders, including all of those around the world who invest in U.S. capital markets,” said FAF Chairman Jeffrey J. Diermeier.
The contribution to the IFRSF will come from the FAF’s reserve fund.
The FAF Trustees made one previous contribution of $500,000 to the IFRSF in 2011. In addition to the cash contribution, the FASB over the past dozen years has dedicated much of its technical staff’s time to the convergence projects.
The FASB and the IASB have been working together to more closely converge U.S. GAAP and IFRS since they jointly signed the so-called Norwalk Agreement in 2002.
About the Financial Accounting Foundation
The FAF is responsible for the oversight, administration, and finances of both the Financial Accounting Standards Board (FASB) and its counterpart for state and local government, the Governmental Accounting Standards Board (GASB). The Foundation is also responsible for selecting the members of both Boards and their respective Advisory Councils.