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FASB publishes four "convergence" exposure drafts

  • FASB (old) Image

16 Dec 2003

The US Financial Accounting Standards Board has published four exposure drafts that would result in US accounting standards converging to existing International Financial Reporting Standards.

Under the four EDs:

  • Voluntary changes in accounting policies would be required to be applied retrospectively rather than by cumulative effect adjustment as currently required.
  • Three changes are proposed for calculating earnings per share.
  • A gain or loss would be recognised on the exchange of similar productive assets based on the fair value of the exchange unless the exchange lacks commercial substance.
  • Abnormal amounts of idle capacity and spoilage costs would be excluded from the cost of inventory and expensed as incurred.
Additional information:

Correction list for hyphenation

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