Today, the IASB and FASB (the “boards”) issued their fourth progress report on their convergence work. The report provides an update on the actions taken by the boards since their last report in November 2010. FASB Chairman Leslie Seidman stated that “the progress report highlights the many areas where [the boards] have already improved and converged [the] standards, and [their] plans for completion of the priority projects. [The boards] have also clarified [their] plan to continue to engage stakeholders in the remaining steps of the process, and give them an opportunity to review the draft standards before they are finalized.”

Since November, the boards have (1) nearly completed five projects, including fair value measurement, consolidated financial statements (including disclosure of interests in other entities), joint arrangements, other comprehensive income, and postemployment benefits; (2) given priority to their projects on revenue recognition, leases, financial instruments, and insurance contracts; (3) extended the timetable for completion of the priority projects; and (4) agreed, when determining effective dates, to provide sufficient time for entities to implement changes.

For details on the status of short-term convergence work, memorandum of understanding projects, and the work plan for the remaining priority convergence projects, refer to Appendixes A and B in the progress report.