At the 2011 AICPA SEC and PCAOB conference, the leaders of the two biggest players in global accounting convergence, Leslie Seidman, FASB Chair and Hans Hoogervorst, IASB Chair, admitted that the current model for convergence is proving ineffective (“FASB, IASB Chiefs Agree New Convergence Model Is Needed” from Journal of Accounting: http://www.journalofaccountancy.com/Web/20114869.htm).
I sure hope someone informed the US Securities and Exchange Commission because much of their recent “Condorsement” proposal is built on continuation, with some modification of the FASB’s role, of the FASB/IASB convergence activities.
The “Condorsement” model, proposed by the SEC staff in May 2011, suggests a model of IFRS adoption in which the FASB and the IASB continue their convergence efforts with the FASB “endorsing” proposed final standards. When a final standard is approved for adoption in the U.S., it will be adopted into US GAAP, which permits the continuation of the US GAAP signature.
In the rare instance that the FASB fails to endorse a final standard, the FASB retains the authority to amend the standard appropriate for U.S. adoption.
Of course, if the FASB and the IASB are concerned that the current convergence model is flawed, the SEC’s condorsement model might be “DOA”.