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FAF offers to contribute to IFRS Foundation funding

  • FAF (US Financial Accounting Foundation)  Image

Jan 29, 2014

The Financial Accounting Foundation (FAF), which is responsible for the oversight, administration, and finances of the FASB, has announced that it will contribute up to $3 million to the IFRS Foundation “to support the completion of international convergence projects.” The FAF stressed that the contribution, to be made in up to three payments of $1 million during 2014, is nonrecurring.

The IASB and FASB have four major convergence projects to complete: revenue recognition, leasing, financial instruments (both classification and measurement and impairment), and insurance. Revenue recognition is nearing completion (finalized pronouncements by IASB and FASB are currently expected in the first quarter of 2014), the financial instruments topics could be completed in the second half of 2014, while insurance and leases have not yet been given an expected publication date.

While the aim of the contribution is to complete the convergence projects, collaboration will continue even after the finalized pronouncements have been published. The FASB and IASB announced that they would form a joint transition resource group for revenue recognition in July 2013. The FASB is also a member of the IASB's Accounting Standards Advisory Forum (ASAF).

The FAF trustees made one previous contribution of $500,000 to the IFRS Foundation in 2011. In addition, FASB has dedicated technical staff to the convergence projects.

More information is available in the announcement on the FAF's Web site.

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