Association for Financial Professionals (AFP) asked the G-20 nations to delay the June 2011 deadline to merge U.S. Generally Accepted Accounting Principles (U.S. GAAP) and the International Financial Reporting Standards (IFRS) regarding lease accounting to allow time to deliberate on several proposed financial reporting changes.
The request by AFP came in a letter to the South Korean Minister of Strategy and Finance as South Korea prepares to host a meeting of the G-20 nations in November.
"The imposed deadline interferes with the process of standard setting," said Salome J. Tinker, CPA, Director, Accounting & Financial Reporting for AFP. "This process is one of the key points the Securities Exchange Commission will consider as it evaluates whether the International Accounting Standards Board (IASB) is able to take over as the standard-setting body and commit to the United States' adoption of IFRS."
Tinker added, "While global standards are needed, the leasing issue is but one example of how the Financial Accounting Standards Board and the IASB are rushing to merge USGAAP and IFRS in the name of convergence. It would be counterintuitive and costly for companies to have to converge or adopt bad standards that will have to be reworked again."
To read the letter, signed by AFP and 23 other organizations, go to www.AFPonline.org/G20.
About AFP® The Association for Financial Professionals (AFP), headquartered outside Washington, D.C., serves a network of more than 16,000, members with news, economic research and data, treasury certification programs, networking events, financial analytical tools, training, and public policy representation to legislators and regulators. AFP is the daily resource for the finance profession.
AFP's global reach extends to over 150,000 treasury and financial professionals worldwide, including AFP of Canada; London-based gtnews, an on-line resource for the treasury and finance community; and bobsguide, a financial IT solutions network.