FASB chairman's views on a global reporting system

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31 Dec 2007

We have posted a speech by Robert H Herz, Chairman of the US Financial Accounting Standards Board, titled Towards a Global Reporting System: Where Are We and Where Are We Going?.

In his remarks, Mr Herz posed a series of questions:
  • Why the movement towards global financial reporting?
  • But what exactly is the end goal?
  • What are the key elements of such a system?
  • Where are we now?
  • So what's needed to achieve a global reporting system?
    • What's needed internationally?
    • What's needed in the US?
  • OK, so where should we head?
In response to the last question (where should we head), Mr Herz identified 'three possible endgames':
  1. 'Mutual recognition' only
  2. 'Mutual recognition' plus 'two-GAAP' system for US registrants
  3. A single set of high-quality international standards for registrants (and perhaps others)
Mr Herz stated that:

"FASB and FAF support option 3 (single set of high-quality international standards).... We advocate a well planned 'improve and adopt' approach to transitioning the US to IFRSs – improvement through continued joint projects between IASB and FASB in major areas, and directly adopt other parts of IFRS."

Click to view Chairman Herz speech Towards a Global Reporting System: Where Are We and Where Are We Going? (PDF 70k)

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