What was the impetus for a move toward a global accounting standard?
Before joining FASB, I was on the International Accounting Standards Board (IASB). In 2002, we met with our friends in the IASB in Norwalk, Conn., where FASB is headquartered, and put together the Norwalk Agreement, which was a framework to work together to develop global accounting standards. Most of our major projects since then have been accomplished together with a mixed staff. We’re looking to produce common standards and to work together to identify common high-quality solutions. How has it progressed and what is the outlook for IFRS? Last year, the SEC lifted the requirement for reconciliation to generally accepted accounting principles (GAAP) for foreign filers that use IFRS. That was step one. We look at this as a road map. At some point if there’s enough progress, the next set of issues is whether to allow U.S. companies to use IFRS and switch from GAAP. The next step was for the SEC to put out a proposal on that, which it did in late August. That proposal, now in a comment p
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- What was the impetus for a move toward a global accounting standard?
