This issue covers accounting standard-setter and regulatory activities that affect year-end financial reporting, as well as recent developments at the end of 2010. While some may remember 2009 as the “year of the financial crisis,” 2010 may arguably be remembered as the “year of convergence.” In 2010, the FASB and IASB modified their joint work plan on convergence to more closely align U.S. GAAP and IFRSs. During the year, the two standard setters unveiled their proposals on (1) financial instruments, (2) revenue recognition, (3) leasing, (4) insurance contracts, (5) balance sheet offsetting, and (6) the statement of comprehensive income. In addition, the two boards issued discussion papers on when and how all of these convergence standards would be put into effect. While some are hoping for a “big bang” approach, others wish for a more staggered approach.

So what will be the focus for 2011? Convergence of global accounting standards will certainly continue to dominate the headlines, since many of the joint FASB and IASB projects are expected to be finalized during 2011. Also, be on the lookout for continued SEC rulemaking as the Commission continues to address the mandates of the Dodd-Frank Act. Lastly, 2011 may see the advent of yet another standard-setting board, one for private companies. So stay tuned, because 2011 promises to be a “year of change.”

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