What would become of the Financial Accounting Standards Board (FASB)?
If the FASB remains in existence, its role is likely to be one of conveying US views to the IASB on pending and prospective IASB projects, very much as the UK Accounting Standards Board does today. At the request of the IASB, the FASB may do the groundwork on particular projects. • Would US companies take undue advantage of the relatively fewer rules in IFRS? Very likely, they would. These gaps in guidance probably would be filled in by the SEC in its Staff Accounting Bulletins, which means that some methods of implementation of IFRS allowed by regulators in other countries may not be available to US companies and foreign registrants in the US securities market. Such actions by the SEC might well detract from the global comparability of IFRS, unless, as suggested below, other countries and jurisdictions feel obliged to follow the SEC lead. • How would loan agreements and other contracts keyed to US GAAP be affected? The loan agreements and other contracts would need to be renegotiated
